Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => DeFi tokens => Topic started by: EAA-ALLAH on April 27, 2021, 08:37:34 PM
-
In the “DeFi Summer” of 2020, Compound brought the heat by pulling out an old concept, liquidity mining. Its willingness to reward lenders and borrowers in its COMP governance tokens helped make it the biggest lender in all of Ethereum.
Now, in an effort to keep pace, decentralized finance (DeFi) competitor Aave is trying out its own liquidity mining program. Starting today, the platform will pay its users in Staked Aave (stkAAVE) when they lend or borrow Ethereum, Wrapped Bitcoin, or stablecoins DAI, GUSD, USDC, and USDT. And we’re not talking about a few extra pennies.
Decentralized finance is the blanket title given to blockchain-based protocols that remove financial intermediaries, making lending and borrowing possible without loan officers or credit checks.
Liquidity mining, also known as “yield farming,” involves pooling your cryptocurrency into a fund so it can be lent out to others—not much different from a savings account or certificate of deposit (the latter of which pays more in exchange for an inability to move it). In exchange for providing the exchange or protocol with liquidity, it rewards you with another type of token. Source (https://cryptonews.net/582496/?utm_source=CryptoNews&utm_medium=app&utm_campaign=shared)