Скачать или смотреть Earning passive income with yield farming

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With yield farming, you can earn up to 50% rewards on your crypto investments without lifting a finger. Yield farming is a method of generating passive income by locking up your cryptocurrency in a liquidity pool on decentralized exchanges. Since you are providing liquidity to the exchange, you are rewarded with a portion of the transaction fees from the liquidity pool based on your share in the pool.

Yield farming is a great way for earning consistent passive income, especially if you are not planning to sell your cryptocurrencies anytime soon. Rewards are expressed in the form of Annual Percentage Return or APR. You can get a higher APR depending on the volatility of both assets in the digital pool. For example, you can earn about 40% APR from the GMT-USDC pool while the BNB-BUSD pool has a 12.29% APR right now on Pancake Swap.

This is because there is much more liquidity provision in the latter pool.
But remember that you also run the risk of impermanent loss with yield farming. This is where the temporary price action of the digital assets in the pool outweighs farming rewards. However, this loss is impermanent because you don’t miss out on profits if you keep providing liquidity in the long term. So, it’s important to provide liquidity for crypto that you are betting on in the long term.