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The world of traditional finance is feeling outdated. We’re seeing crypto holders increase their investments way beyond the point banking could. Yield Farming alone is accomplishing much of this. It offers a new way for crypto holders to make money on their existing investments.
What is Yield Farming?
Yield farming is similar to a concept in traditional banking — that of lending money. In the world of fiat, banks use funds held in savings accounts to lend out to borrowers. Those borrowers pay back loans with interest, and some of that interest rate carries over to the lenders.
However, banks take up the majority of the return, which is unfair considering lenders are the fund-providers, here. This is where yield farming comes into play.
Yield farming takes the lending and borrow...
This article was first published on coinquora.com
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