Yield farming on ethereum tron and binance chain is right now the hottest topic which made us create videos on Youtube daily, subscribe here to the channel as we hate sending emails with no reason yet there is new stuff daily to stay on top.
What is cryptocurrency yield farming in DeFi ?
In short its about freezing assets that you already have into some smart contract that will then mine new coins for you or get you more of the ones you already had. There are many ways to yield farm or stake cryptocurrency like ethereum but the most used is: give liquidity to decentralized exchange ie Uniswap, stake Liquidity Pool tokens or stake/freeze others tokens that you have like ETH, WBTC, WETH, TRX, BNB and some others.
How to give liquidity on Uniswap or Justswap ?
The method is always the same and is easier than it sounds, just keep in mind – every move costs fees and they are very high on ETH right now. First get some meta wallet ie MetaMask or TronLink.
On Uniswap we go to a chosen pair that interests us and we need to be sure we have equal number of coins on both sides ie 100 USDT and 100 USD worth of ETH.
Click add liquidity on the right on Uniswap but Justswap works same and othes too.
Then we write about to USDT or ETH that we want to use, it will even them out (both sides need the same numbers). We click approve and its done.
Ethereum Yield Farms and DEXes
Now that you know how to generate LP tokens for chosen pairs you can start farming even complex places. For start due to high fees on Ethereum instead of using Uniswap directly for buying tokens its better to use DEX aggregator that uses many places for cheapest buys ie 1inch exchange.
The farms are always risky due to impermanent loss (moment when token on one side gets worth nothing and your collateral shrinks). Ie you give liquidity to ETH-XXX token. And XXX token loses so much in price that your ETH shrinks. That is why safe way is to use only tokens with big popularity and liquidity.
Here are currently best Ethereum yield farming places which are more or less secure:
TRON TRX Yield Farming
Right now TRON is the hottest because of ETH big fees. On Ethereum its not worth to join farm with less than 1000-2000 USD yet on TRX with just few bucks you can do it.
Watch the videos and open them to see links if they are not seen from the window.
Binance OKex and other Exchanges Yield Farming Profits
I told you about fees on ETH right, but also people used to remove coins from exchanges to farm them on DeFi aka Decentralized Finance. Exchanges which are fast in things noticed the trend fast and gave new options.
You can farm directly on Binance, Okex, Coinex (very overseen place!) with no fees as you use centralized place CeFi – then you dont remove coins from them and you dont lose on fees plus can enter with low amounts. Win-win.