Crypto Yield Farming – An Overview of How Yield Farming Works<\/b><\/span><\/h2>\n This guide previously mentioned that one of the core segments of the traditional financial sector that DeFi will challenge is that of interest-earning accounts.<\/p>\n
To reiterate, a recent study found that the average checking account in the US yields an interest rate of just 0.03%.<\/p>\n
Savings accounts in the US pay a marginally higher average interest rate of 0.06%. However, even at 0.06%, a $10,000 deposit would yield just $6 over the course of a year.<\/p>\n
In comparison, crypto yield farming offers highly attractive interest rates of double or even triple-digit APYs. This will often depend on the digital token that you are looking to earn interest on and the respective platform.<\/p>\n
In terms of how crypto yield farming works, this is not too dissimilar to a conventional savings account. This is because the main concept is that you will deposit your idle digital tokens into a yield farming platform and in return – generate a competitive rate of interest.<\/p>\n
Yield farming platforms like DeFi Swap are able to facilitate high APYs as the tokens that you deposit are put to good use. More specifically, the tokens will often be lent to borrowers via loans that are secured by crypto.<\/p>\n
In other circumstances, tokens deposited into a yield farming plan might be utilized for the provision of exchange liquidity. Either way, crypto yield farming can be viewed as a completely passive way to generate income on your digital asset investments.<\/p>\n
Furthermore, you retain ownership of the respective crypto assets, meaning that you will still benefit if the market value of the token increases.<\/p>\n
Most importantly, crypto yield farming operates in line with the overarching ethos of decentralized finance and DeFi Swap, insofar that the end-to-end process is free from centralized third parties and intermediaries.<\/p>\n
Instead, each and every transaction associated with the crypto yield farming ecosystem is facilitated by smart contracts – which are both transparent and immutable. This means that you can be confident that your funds are well looked after – as there is no human intervention.<\/p>\n
How to Farm Crypto Tokens on DeFi Swap for High APYs\u00a0<\/b><\/span><\/h2>\n If you are looking to maximize your potential crypto gains via a yield farming strategy, the entire process can be completed on the DeFi Swap platform in a matter of minutes.<\/p>\n
With that said, if you are completely new to this concept, our guide will now walk you through the crypto yield farming process every step of the way.<\/p>\n
Step 1: Connect Wallet to DeFi Swap Platform<\/span><\/h3>\nThe first step is to connect your Trust Wallet app to the DeFi Swap website on your desktop device.<\/p>\n
You can scroll up to review the process of setting up Trust Wallet if you have yet to complete this step.<\/p>\n
Nonetheless, all you need to do is click on the \u2018Connect Wallet\u2019 button followed by\u00a0 \u2018WalletConnect\u2019, before authorization the connection on your Trust Wallet app.<\/p>\n
Step 2: Choose Token to Farm<\/span><\/h3>\nThe next step is to choose the crypto token that you are planning to farm. Put otherwise, this is the token that you currently own and that you wish to earn interest on.<\/p>\n
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In this example, we are selecting DeFi Coin.<\/p>\n
Step 3: Select Lock-Up Term<\/span><\/h3>\nA notable feature offered by the DeFi Swap platform is that you can choose your preferred lock-up period. This refers to the number of days that your tokens will be locked away for and thus – you will be unable to make a withdrawal until this period concludes.<\/p>\n
Naturally, the longer that you are happy to lock your tokens away, the higher the APY that you will be able to generate.<\/p>\n
DeFi Swap typically offers four core plans – Bronze, Silver, Gold, and Platinum.<\/p>\n
To give you an idea of the yields on offer, consider the example below when farming DeFi Coin:<\/p>\n
Bronze: <\/b>30 Days – 30% APY<\/p>\n
Silver<\/b>: 90 Days – 45% APY<\/p>\n
Gold<\/b>: 180 Days – 60% APY<\/p>\n
Platinum<\/b>: 365 Days – 75% APY<\/p>\n
As you can see from the above example, over the course of one year, you can earn an APY of up to 75% when yield farming DEFC on the DeFi Swap platform.<\/p>\n
This means that for every 10,000 DEFC tokens deposited, you would generate an additional 7,500 tokens on a 12-month basis. As noted, this financial benefit is in addition to any token value gains that DEFC makes in the open market.<\/p>\n
Step 4: Enter Amount and Confirm Chosen Yield Farming Plan<\/span><\/h3>\nOnce you have chosen the lock-up plan that suits your investment goals, you will need to type in the number of tokens that you wish to farm.<\/p>\n
In the example below, we are looking to farm 10,000 DEFC tokens.<\/p>\n
<\/p>\n
Then, you will need to click on the \u2018Approve\u2019 button. In doing so, a Trust Wallet pop-up notification will once again appear. This will ask you to confirm the transaction.<\/p>\n
When you do, the tokens will be transferred from your Trust Wallet and into your chosen crypto yield farming plan.<\/p>\n
And that\u2019s all it takes when farming crypto on the DeFi Swap platform. There is nothing else for you to do until your chosen lock-up period concludes.<\/p>\n
When it does, you will receive your initial tokens deposit back into your Trust Wallet, alongside the interest that you have earned.<\/p>\n
Liquidity Provider Rewards – An Overview of How to Make Money by Providing Liquidity\u00a0<\/b><\/span><\/h2>\n Another core segment of the DeFi sector that allows you to generate interest on your idle digital assets is liquidity provision.<\/p>\n
In its most basic form, you will initially deposit your tokens into a decentralized finance platform like DeFi Swap. Then, then tokens will be allocated to a pool, which in turn, provides liquidity for the DeFi Swap exchange.<\/p>\n
This ensures that people can use the DeFi Swap platform to convert digital tokens in a smooth and efficient manner. It also ensures that there are enough tokens available to facilitate your intended swap.<\/p>\n
In return for providing liquidity to DeFi Swap, you will be paid a rate of interest. The interest that you earn is paid for via the trading fees that the DeFi Swap exchange collects from buyers and sellers.<\/p>\n
Each and every transaction that goes through the DeFi Swap exchange will earn you a 0.25% commission on all trades. This means that as DeFi Swap continues to increase its overall daily trading volume, the amount of interest you earn will also rise.<\/p>\n
How to Provide Liquidity on DeFi Swap to Earn a Share of Trading Fees<\/b><\/span><\/h2>\n If you like the sound of earning 0.25% of all trading fees collected by the DeFi Swap exchange, this segment of our guide will explain how to utilize this feature.<\/p>\n
Step 1: Connect Wallet to DeFi Swap<\/span><\/h3>\nOnce again, the first step is to connect your Trust Wallet to the DeFi Swap platform by clicking on \u2018Connect Wallet\u2019 followed by \u2018WalletConnect\u2019.<\/p>\n
You can scroll up for a step-by-step recap on how to connect Trust Wallet to DeFi Swap.<\/p>\n
Step 2: Choose Input Token<\/span><\/h3>\nThe next step is to click on the \u2018Add Liquidity\u2019 button.<\/p>\n
This will then present you with a box that requires you to specify your input tokens. When providing liquidity, you are doing so for a specific trading pair.<\/p>\n
<\/p>\n
For example, let us suppose that you are providing liquidity for the pair BNB\/DEFC. This means that you would need to deposit both of the respective tokens into the DeFi Swap liquidity pool.<\/p>\n
You can choose which tokens you wish to add liquidity for by clicking on the relevant button and choosing the crypto asset from the list of supported options.<\/p>\n
Step 3: Enter Amount of Token Liquidity<\/span><\/h3>\nOnce you have selected the pair that you wish to provide liquidity for, you will then need to specify the total number of tokens.<\/p>\n
In the example below, we are looking to provide liquidity worth 0.004 BNB.<\/p>\n
<\/p>\n
When we type this figure into the relevant box, the underlying DeFi Swap smart contract informs us that this translates into 7.00088 DEFC.<\/p>\n
And as such, we would need to cover 0.004 BNB and<\/i> 7.00088 DEFC.<\/p>\n
Step 4: Confirm Liquidity Platform<\/p>\n
The final step required to start earning your share of trading fees collected by the DeFi Swap platform is to confirm the transaction.<\/p>\n
In our example, this would require us to click on the \u2018Approve DEFC\u2019 button. The button will, however, display the respective base token that you are looking to provide liquidity for.<\/p>\n
Finally, a notification will populate on your Trust Wallet app asking you to confirm the transaction with DeFi Swap.<\/p>\n
Once you do, you will be entitled to 0.25% of any trading fees collected when buyers and sellers trade the respective pair on the DeFi Swap platform.<\/p>\n
Commonly Asked Question on DeFi Swap<\/b><\/span><\/h2>\n The most common questions and queries that we receive from new and existing users of the DeFi Swap platform can be found below.<\/p>\n
Converting Tokens on DeFi Swap<\/b><\/span><\/h3>\nWhat toke ns does DeFi Swap support?<\/span><\/h4>\nDeFi Swap currently supports tokens listed on the Binance Smart Chain. This means that in order to benefit from the best market price and fees possible, you should use BNB as your base currency when using the Defi Swap platform.<\/p>\n
How do I pay transaction fees?<\/span><\/h4>\nTransaction fees – which are determined by the underlying DeFi Swap platform, are paid in BNB. Once again, this is because DeFi Swap operates in conjunction with the Binance Smart Chain.<\/p>\n
What wallets does DeFi Swap support?<\/span><\/h4>\nThe vast majority of users will connect their MetaMask wallet to the Defi Swap platform. This is because MetaMask not only comes in the form of a mobile app but a browser extension too.<\/p>\n
As such, this makes the process of using DeFi Swap easier, as you can complete transactions on a laptop device.<\/p>\n
With that being said, DeFi Swap also supports WalletConnect. This means that you can use any wallet of your choosing – as long as it can connect to the Binance Smart Chain.<\/p>\n
This includes Trust Wallet – which is also a popular option to trade BSc tokens. All you need to do is scan the QR code on DeFi Swap via your Trust Wallet app, and this will create a secure connection.<\/p>\n
Do I need to register an account to use DeFi Swap?<\/span><\/h4>\nDeFi Swap is a decentralized exchange that is not bound or connected with any centralized third parties. This ethos sits at the core of the decentralized finance space.<\/p>\n
And as such, you can use DeFi Swap services without needing to create an account. This also means that you are not required to provide any personal information or verification documents.<\/p>\n
Earning via Crypto Yield Farms on DeFi Swap<\/b><\/span><\/h3>\nWhat tokens can I farm on DeFi Swap?<\/b><\/span><\/h4>\n DeFi Swap supports a wide variety of tokens that operate on the Binance Smart Chain. More tokens are being added frequently to meet user demand.<\/p>\n
What yields can I earn when crypto farming on DeFi Swap?<\/b><\/span><\/h4>\n Yields on DeFi Swap will vary depending on a variety of core variables. First, this will depend on the token that you wish to farm. Naturally, larger cap tokens that are prone to lower levels of volatility will often yield a lower APR. Similarly, newly launched tokens with a small market capitalization and low levels of liquidity will attract much higher APYs.<\/p>\n
The next thing to consider is the length of time that you are happy to lock your tokens away. DeFi Swap utilizes four tiers – Bronze (30 days), Silver (90 days), Gold (180 days), and Platinum (365 days).<\/p>\n
Ultimately, the longer that you lock your tokens away, the higher the APY you will generate.<\/p>\n
Can I withdraw tokens once they are locked in a yield farming pool DeFi Swap?<\/b><\/span><\/h4>\n On the one hand, crypto yield farming allows you to earn an attractive rate of interest in a passive manner. However, the key thing to remember is that once your tokens are locked in a pool, you won\u2019t be able to withdraw the funds until the term concludes.<\/p>\n
And as such, you should only choose a lock-up plan that is suitable for your financial profile. If you believe that you might need the tokens to cover short-term expenses, then crypto yield farming might not be for you.<\/p>\n
Earning via Liquidity Pools on DeFi Swap<\/b><\/span><\/h3>\nWhy do I need to deposit two different tokens when providing liquidity?<\/b><\/span><\/h4>\n Irrespective of the cryptocurrency that you are interested in buying or the exchange you are looking to use for this purpose, you will always access your desired market via a pair.<\/p>\n
For example, if you wanted to buy Bitcoin with US dollars, you would be trading BTC\/USD. Similarly, if you wanted to exchange BNB for GALA, you would be trading BNB\/GALA.<\/p>\n
And therefore, in order for there to be suitable liquidity levels to offer users a smooth and efficient trading market, there would need to be sufficient quantities of both tokens contained within the pair on DeFi Swap.<\/p>\n
What is impairment loss?<\/b><\/span><\/h4>\n One of the biggest risks that you need to consider when providing tokens for a liquidity pool is that of impairment loss.<\/p>\n
In its most basic form, this refers to a loss that will occur if there is an unfavorable difference between the market value of the respective tokens if they were held in a private wallet<\/i> compared to that of the liquidity pool<\/i> you are supporting.<\/p>\n
After all, when you provide liquidity for a pool, you need to take into account the value of both<\/i> tokens at the time of the deposit against that of its current market price.<\/p>\n
On the one hand, you will earn a share of collected trading fees when providing liquidity on the DeFi Swap platform. In an ideal world, the commissions that you earn will outweigh any impairment loss encountered.<\/p>\n
However, this isn\u2019t always the case. That is to say, there is every chance that your impairment loss will equate to a greater amount than any trading fees collected. If this happens and you withdraw your tokens out of the liquidity pool, you will likely be doing so at a loss.<\/p>\n","protected":false},"excerpt":{"rendered":"
DeFi Swap is a newly launched decentralized finance platform that allows users from all over the world to maximize their cryptocurrency investments. Put simply, not only does DeFi Swap allow you to instantly swap one digital currency for another without requiring a centralized provider, but you can also earn an attractive yield on idle tokens. This is possible through both crypto yield farming and liquidity pool contributions. The purpose of this guide is to explain how the DeFi Swap platform works, alongside a comprehensive step-by-step walkthrough of how to make the most of its exchange and yield-generating services when using <\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":""},"acf":[],"yoast_head":"\n
DeFi Swap Guide - How to Use DeFi Swap With Trust Wallet - Deficoins.io<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n