By Tojaramar - 18.02.2020
Curve finance yield farming
This can come in handy for yield farming strategies. Curve Finance. Curve Finance is a decentralized exchange protocol. Explore DeFi yield farming tutorials using top DeFi products like Synthetix, Stake yCurve on yEarn either directly through Curve or on magazin-id.rue/stake.
Let's dive in.
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There is a lot of DeFi-specific lingo that one needs to learn to be able to lift the veil on DeFi. Reward tokens are responsible for the sky-high returns DeFi projects seem to generate. How did these tokens manage to achieve both those things in just a couple of months?
Curve finance yield farming are they used for?
Do they really represent a new paradigm for DeFi? This is how it worked: Alice owns DAI. Alice receives cDAI, a pool token, against that deposit.
But it had another effect curve finance yield farming was less obvious at the time: it allowed DeFi to generate TVL out of thin air. That is source not a realistic scenario!
What is Yield Farming in DeFi
If there were no borrowers, then the interest free mining sites 2020 would be zero percent, so lenders would have no incentive to deposit their cDAI with Aave. Unless there are other incentives to participating in a pool?
Enter Reward tokens. The first popular implementation of a reward token was achieved by… you guessed it, Compound.
Earlier this year, Compound announced it would go fully decentralized and let the community dictate the rules of its protocol. Which asset to add, what collateral would be required, what interest rates dynamics would look like: al curve finance yield farming these curve finance yield farming would all be decided by the Compound community through a governance token: COMP.
The more assets one click contribute to a pool, the more COMP that user would be able to claim for a deeper dive into this, curve finance yield farming out this past Market Update and the more voting power curve finance yield farming user would gain.
The story really starts to get interesting when COMP is listed.
What Is Yield Farming in Decentralized Finance (DeFi)?
Of course, this success did not curve finance yield farming unnoticed: one by one, the most prominent DeFi protocols announced their intention to launch their own governance read: reward token.
The story is always more or less the same: 1.
Lock your tokens in Protocol X, for example: Aave.
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