DeFi 101Aug 25

Liquidity Mining/Yield Farming – The Rocket Fuel of Decentralized Finance

Yield Mining


· Total value of liquidity pools continues to rise

· DeFi market worth more than $10 billion

· Yield farming is DeFi’s most significant growth driver

In the decentralized finance summer of 2020, yield farming, or liquidity farming, was the hottest topic. In 2021, liquidity pools' total value locked continues to rise as more people show interested in the trade.

What exactly is yield farming?

Yield farming is a form of crypto trade where asset holders (liquidity providers) lend or stake their assets to get returns in the form of cryptocurrency. This innovative application of DeFi (decentralized finance) has skyrocketed in recent days thanks to crypto market innovations like liquidity mining.

Currently, yield farming is the main growth driver of the decentralized finance sector, managing to balloon the industry's worth from $500 million to more than $10 billion today.

Kibet Elikana
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