Yield farming will be incorporated into nakamo.to’s overall portfolio strategy, demonstrating nakamo.to‘s commitment to and support of the decentralized finance space.
Without a doubt, yield farming has energized the decentralized finance (DeFi) industry. We are proud to incorporate our support for this process and the overall DeFi industry into our investment strategy, as our portfolio company nakamo.to begins yield farming with its portfolio.
Yield farming is an innovative and popular new strategy for investing in DeFi applications.
Also termed liquidity mining, yield farming involves an investor “staking” (meaning, locking up) cryptocurrencies into a particular DeFi project. By doing so, these users earn rewards for providing liquidity to a particular application. While the precise nature and terms of these rewards vary from platform to platform, they are generally paid out as a project’s own token in an amount based on a set annual percentage yield (APY) or annual percentage rate (APR) of the project’s transaction fees.
The popularity of this practice has been steadily growing over the last few months. At present, there are billions of dollars in total value locked (TVL) in yield farming protocols, proving the massive support of this procedure by cryptocurrency holders.
Yield farming is beneficial for investors, DeFi projects, and the overall blockchain industry.
Yield farming has proved quite advantageous to all players in the DeFi ecosystem, and even offers benefits to the blockchain industry at large.
Individuals who perform yield farming by staking their tokens into a protocol of course benefit from being rewarded with tokens. These tokens can be quite valuable, as yield farming has proved to be a conservative and steady yield-generating mechanism.
The DeFi space has also immensely benefited from the recent advent of yield farming. Many new DeFi projects have emerged on the scene that offer new tokens or ways to earn rewards. Users have flocked to many of these new projects, hoping to receive a significant yield.
Finally, the advantages of yield farming may reach even beyond DeFi to the overarching blockchain industry. Illiquidity has been a historic issue facing the blockchain and cryptocurrency industries, and has severely limited scalability and the ability to achieve widespread use and adoption. Yield farming offers an opportunity to resolve the illiquidity issues plaguing the industry.
Nakamo.to’s incorporation of yield farming into its strategy supports its overarching mission to promote growth within the blockchain industry.
Nakamo.to is incorporating yield farming into its investment strategy for a multitude of reasons. Primarily, performing yield farming demonstrates nakamo.to’s unwavering commitment to supporting the DeFi space as a part of its broader objective of promoting growth in the blockchain industry. Furthermore, yield farming has proven to be a conservative way to gain exposure to the DeFi space. Thus, this opportunity positions nakamo.to to supplement its existing portfolio with steady returns.
For more information about Advanced Blockchain AG and nakamo.to, check out their websites at advancedblockchain.com and nakamo.to.