This whole DeFi and Uniswap craze has gone through the roof.
FTX and BINANCE are now competing on who launches the shitcoins first, and there are now DeFi perps to trade on many exchanges, which is just insane.
Now there's yield farming as well, which is where you stake a certain cryptocurrency to farm another.
Essentially, you donate your base cryptocurrency to the pool to "farm" the other one for free. The pool uses your donated crypto to work and in return, you get some other crypto as profit.
Really simple.
However, the barrier to entry is really high. You have to have at least $5000 to be able to farm any meaningful amount, and gas fees are insane as well. So yield farming wasn't for everyone.
Now Binance has its own yield farming scheme right on the site. It's extremely easy to use, and as bonus points you still get a regular APY from it!
Currently you can use either BNB, BUSD, ARPA or ONT to farm BEL and WING. All you have to do is add the above named tokens to the flexible savings option, and you're done.
Zero gas fees, saving starts as low as $5 so anyone can get in. Very intuitive.
That said, is it possible to double your investment in a month?
The answer is yes! With the ONT pool, you get a whopping 1134% APY. That in itself is insane, and the fact that you also get WING for free is also insane.
It sounds too good to be true, and although it isn't, it certainly may be soon.
Yield farming hasn't come to stay in my humble opinion. It's more like a phase that would eventually pass, and leave a new generation of bag holders with it.
I personally get in and get out. I'm currently staking BUSD, so I won't lose any money if everything goes to shit. I earn 26% APY, along with free WING and BEL, so I'm not complaining.
I think it's a bad idea to farm with any token that isn't a stable coin, mostly because of the fact that the market is uncertain right now. There's a possibility that your APY + initial investment won't be equal to your equal investment if the market crashes.
What do you think of yield farming on Binance? Would you get in?
Let me know down below!
Thanks for reading.
