The Brilliance of Yield Farming, Liquidity Providing and Valuing Crypto Projects

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2021-06-14 07:00:12

I’m going to make this as simple and straight forward an explanation as I can. Yield Farming via Staking and Liquidity Providing are a core feature of most, if not all Decentralized Finance (DeFi) projects. The principle behind why they are brilliant also applies to other crypto projects , but lets put that aside. But first let me say that this is not investment advice. This is how I see the market and there may be things that I am wrong about or could change by the time you read this. Feel free to add your thoughts in the comments below.

The first question you have to always ask about any De-Fi is the same question you need to ask about any business you may create a financial relationship with – “What Business Are They In”

Yes, every single DeFI project, is at its core, just another business. They may or may not know what business they are in, but they are just another business that happens to be using a blockchain and smart contracts to host and program their business processes.