A Simple Explanation of DeFi and Yield Farming Using Actual Human Words

A Simple Explanation of DeFi and Yield Farming Using Actual Human Words

Yield Farming

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A primer on DeFi and yield farming. We’ll also cover liquidity mining, automated market making plus the other terms shaping this brave new world.

Today on the Brief:

  • U.S. forces China’s Houston consulate to close
  • U.S. previously-owned housing market grows 20.7% May to June
  • Insider stock selling reaches record levels

DeFi and Yield Farming, Simplified

Today’s episode of The Breakdown is a primer for anyone who has lost track of the terminology surrounding decentralized finance. In it, NLW goes over:

  • DeFi’s background and origins
  • Market making in a traditional context
  • Automated market making
  • How liquidity mining incentivizes economic participation
  • How decentralized exchanges differ from centralized exchanges
  • What “yield farming” actually means
  • Why we shouldn’t be concerned about the Yield Farming bubble
  • Bitcoin
  • Ethereum
  • Litecoin
  • Zcash
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