Similar but not the same even though these two activities will make your cryptocurrency multiplied, but actually they are different. The world of decentralized finance has grown rapidly in recent years as seen from the increasing number of locked assets (Total Value Locked / TVL) in it. These assets are locked by profit makers in various DeFi activities such as yield farming and liquidity mining.
Yield Farming
Yield Farming is an activity where you can store cryptocurrencies and float them in liquidity pools, thus allowing other users to execute smart contracts or borrow your cryptocurrency, and you will earn a return after the smart contract is executed. So Yield Faming is a place or place for cryptocurrency owners to lend your cryptocurrency to those who need funds. So that the nature of Yield Farming is similar to conventional financial service institutions. There are several trusted DeFi Yield Farming platforms such as Uniswap, Compound, Sushiswap and Curve.
Liquidity Mining
Liquidity Mining is an energy efficient crypto mining because it does not require hardware and high electricity costs. Participants will get native coin rewards from the blockchain where they mine crypto. Participants will deposit their liquidity to the Pool and will receive native tokens of approximately 0.3% swap and newly mined tokens. So in your opinion, which is more profitable, Yield farming or liquidity mining?
Yield Farming
Yield Farming is an activity where you can store cryptocurrencies and float them in liquidity pools, thus allowing other users to execute smart contracts or borrow your cryptocurrency, and you will earn a return after the smart contract is executed. So Yield Faming is a place or place for cryptocurrency owners to lend your cryptocurrency to those who need funds. So that the nature of Yield Farming is similar to conventional financial service institutions. There are several trusted DeFi Yield Farming platforms such as Uniswap, Compound, Sushiswap and Curve.
Liquidity Mining
Liquidity Mining is an energy efficient crypto mining because it does not require hardware and high electricity costs. Participants will get native coin rewards from the blockchain where they mine crypto. Participants will deposit their liquidity to the Pool and will receive native tokens of approximately 0.3% swap and newly mined tokens. So in your opinion, which is more profitable, Yield farming or liquidity mining?