You might have heard of Bitcoins, but have you ever heard of the term DeFi? We would get to the definition later, but here’s a simple explanation. DeFi is decentralised finance. Well, that is all for now, as mentioned before, the rest would be explained thoroughly later. Our main focus for today is to find out a significant aspect of DeFi, which is yield farming. Even in this country, defi development Malaysia is quite progressing day by day. So, we would find out what is DeFi, the meaning of yield farming and the worth itself.
Okay, we should find out the real meaning of DeFi before we really dive into our main topic today. DeFi or the full name, decentralised finance, is a financial technology which eliminates the systems such as banks’ control and other financial services. In simpler words, it means you are able to keep your money in a digital wallet instead of the bank. You can use it without having to seek permission from anyone else, unlike the traditional banking system. The process takes less than a minute and is more convenient. This is probably one of the reasons why more people started to opt for DeFi than Bitcoin. We can say that DeFi is also one of Bitcoins’ rivals in cryptocurrency.
DeFi Yield Farming
Now that you have read the definition, it’s time for you to understand another important aspect of DeFi which is yield farming. What even is that? DeFi yield farming is a concept where present crypto assets can be utilised in order to receive more crypto assets. This process is done by trading or staking the assets involved. The project protocol controls the money on the yield farming platform being used. Consumers can easily transfer from a protocol to a new one which would increase their opportunity of getting more incentives. Your digital assets can be stored in DeFi through this process. Since DeFi has a lot of applications, there would be numerous rewards and incentives.
For those who are unaware of the popularity of DeFi, they might think that this is just another new crypto that people just be hyping about. To be exact, since the popularity gained in 2020, DeFi protocols have a total value of more than $78 million, based on a statistic by DeFi pulse. DeFi is actually the most growing cryptocurrency alongside Bitcoins and Ethereum. The sole reason for the rising is due to the benefits DeFi offers. For those who want to keep their money without time-consuming processes like the traditional banking system, this is for you. You don’t even need permission from anyone and digital wallets are known to be safe. These contribute to DeFi’s popularity and at the same time increase its worth.
Depending on your standpoint, if you think that you are capable of investing in DeFi, you do you. Nobody can stop you from doing whatever you want. Just remember to fully understand and grasp the processes and pros and cons before investing.