Yield farming has been a popular application within crypto for a while, and is the reason why DeFi is exploding. Early lenders made huge profits by simply loaning and staking crypto they were going to hold anyway.
So, let’s discuss what DeFi and Yield Farming are and how they relate to each other!
What is DeFi (Decentralized Finance)?
Decentralized finance represents the paradigm shift from traditional, centralized financial systems to peer-to-peer systems powered by decentralized blockchain technologies. It’s also part of a larger shift — from Web2 to Web3 — in how the internet operates, who owns it, and who controls it.
DeFi revolutionized traditional financial services like lending and borrowing by allowing peer-to-peer loans. Smart contracts have removed the need for a middleman, which enables astronomical yields compared to traditional DeFi yields.
However, the sector came into the limelight after Ethereum based credit market Compound started practically giving away their governance token $COMP to their protocol’s users. The term “Yield Farming” became popular since! It simply describes how users can temporarily add their crypto assets to such protocols and earn their respective token rewards.
Understand Yield Farming in DeFi
Allocating your crypto assets to be loaned or staked earns you a certain percentage of your loan in new tokens — this process is called farming.
In traditional finance, when you put your money in the bank, you get interest. Similarly, in the cryptocurrency world, when you stake your crypto assets, you receive interest or fees as rewards in the form of tokens or NFTs. The tokens you receive as a reward for loaning or staking your crypto can also appreciate during market bull runs, further increasing your yield.
How to Earn DeFi Yields by Farming with MetaBlox
MetaBlox is a DID (Decentralized-ID) driven Web3 Network protocol, whose initial application is a global decentralized WiFi OpenRoaming network federation. DIDs, which are used by MetaBlox protocol as blockchain-verified web credentials, lets WiFi users maintain an anonymous and unified digital identity without exposing sensitive information about themselves to blockchains or platforms. Users can verify their identity across different major L1 blockchains without providing KYC information.
For example, somebody who downloads MetaBlox’s DID-integrated app, which features a built-in wallet, will be able to anonymously verify that they are the owner of crypto assets on major L1 blockchains.
Thanks to the blockchain-agnosticism of DID, MetaBlox simplifies the experience of earning interest and tokens from crypto assets across different blockchains.
MetaBlox accomplishes high-yield farming via DeFi liquidity providing, lending, and crypto-payment commissions from multiple ecosystems with integrated DeFi exchanges for users’ swap needs.
MetaBlox will also be able to implement a credit system in the DeFi space thanks to DID, and also aggregate all the DeFi farming yield from the users crypto assets across the major L1 blockchains and reward them with $ROAM tokens.
MetaBlox will implement two burning processes on $ROAM tokens.
If the actual DeFi yield is less than the value of the $ROAM tokens awarded to the wallet holder for loaning and staking their crypto assets, the $ROAM balance will be burnt from the treasury.
When users purchase services on the MetaBlox network, 60% will go to the Community Growth Grant, which is invested back into the network. The remaining 40% will be burnt.
MetaBlox has recently received funding with which it is set to roll out and bootstrap the network of miners and validators.
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