In Recent times Cryptocurrency is broadly involved in business investments globally. People are more likely to adopt Decentralized financial systems to eliminate the geographical barriers, central controlling authority like banks over their business transactions. Blockchain is widely adopted by businesses to automate their business operations in an efficient and hassle-free manner in a well-secured platform.

What is Defi?

DeFi- Decentralized Finance is a substitute for traditional finance is mainly-based on operating as decentralized finance eliminates central control like banks. Defi works over blockchain technology to improve trust and efficiency. 

DeFi Smart Contracts: Smart Contracts are guiding the functioning of decentralized finance (DeFi) protocols. It's because both business owners and users benefited through the smart contracts, and hence the adoption rate is higher. 

What is DeFi Yield Farming?

Defi Yield Farming in which digital currencies are pooled on the Liquidity pools as farming, where the users can lend the digital assets available on pool with the help of smart contracts, users will interest as returns to the lender. The interest given to the lender is known as the yield from the lending. Yield farming is also called as Liquidity mining where the invested cryptocurrencies are pooled for lending in the DeFi protocol.

Liquidity provider in Yield Farming:

Yield Farming is not feasible without the liquidity providers who stake their deposits in liquidity pools. The assets on the pools are lent with a smart contract where a buyer and seller agreement is coded and open in the decentralized blockchain platform!. Some of the leading mining platforms are

Compound
Yearn Finance
Uniswap
Maker DAO
Curve Finance and more

Popular Tokens used on DeFi Platforms

COMPOUND DAI - COMP Token 
Maker - MKR
Kyber Network - KNC Token
Synthetix - SNX Token
Aave - LEND Token
UMA- UMA Token
Loopring - LRC Token 

How does Yield Farming work?

Yield is different from investing in digital currencies like tokens, stablecoins, where it is a process of lending your digital assets in a Decentralized platform for getting return interests from the borrowers.

 Yield farming is like liquidity pools for the digital currency on the DeFi protocols where liquidity providers pool their digital assets, user can lend money with the help of predefined smart contracts, and provides interests from borrowers as returns for the lender.


DeFi- Decentralized Finance is adopted by the business markets among the global industries for their investments in secured Blockchain platforms working under the predefined smart contracts to handle the lender and borrowers' agreement. If you are in the idea of moving your business on the DeFi protocols, go for the best DeFi Development Company.