Yield farming is the activity to optimize your crypto rewards by putting your money in the right pool. This generates certain returns in the form of additional cryptocurrencies. It’s a concept seen in every Decentralized Finance or DeFi project.
Yield farming protocols reward liquidity providers to stake and lock their crypto assets in a smart contract-based liquidity pool. For example, first users provide liquidity in the ETH-DAI pool, and then they stake their acquired ETH-DAI LP tokens in a smart contract. This will earn these users a certain token, like for example SUSHI from SushiSwap.
Yield farmers who take high risks, put their money in newly established pools in order to have the highest return on their investment, Annual Percentage Yield or APY. Users who take low risk, put their money in established projects or liquidity pools.
Yield farming game Cometh on the Polygon blockchain has introduced $10 M.U.L.E. spaceships, alongside a $150,000 competitive tournament. The cheap spaceship serve as an introduction into the game, and players…