Earnings on farming 🟡
Friends, many of you may think that you can only make money on crypto through trading and retrodrops, but this is not true. There are many ways. One of them is farming. I and my team are also working in this direction, so I decided to tell you about it.
➡️ Farming is a type of crypto investment in which you put your coins into a liquidity pool. In return, you receive a reward in the form of interest or transaction fees.
A liquidity pool is a vault where a trader can quickly exchange one currency for another. In other words, it is a vault that holds two coins in a 50/50 ratio in dollar terms.
📝 One of the most popular sites (DEX) is Pancake Swap and Uniswap. They have all the most popular token pairs for farming and steaking (I'll write about that later). BUT, personally for me and my team, farming on popular pairs (e.g. BUSD / USDT) is not interesting, as the percentage of return on them is very low (~10% per year).
Therefore, we are specifically looking for liquidity pools with tokens that have only recently entered the market. In them, the yield can reach ~400% per year. but, it is more risky. The right strategy is very important here.
📍IMPORTANT: If you want to put a particular coin into a farming pool, then you need to put another coin equal in value to the first one. For example, you want to put $1000 into the DAI-BUSD pool. Since they are two stablecoins, you would put in 500 DAI and 500 BUSD. If the rate is different, then the ratio of the number of coins will be different.
But in this type of investment, as in any other, there are certain risks. And many people don't even guess about them.
❔ Make a post about the risks in farming?
🔥 - Yes
🧐 - No
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