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Yield Farming
In order to understand Yield Farming, you need to understand first Liquidity provision.
Liquidity provision is a way of helping to make it easier for people to swap different crypto assets, like SDAO and ETH. When you provide liquidity, you're adding some of your SDAO and ETH to a big pile that other people can use to trade with. This helps make sure that there are always enough SDAO and ETH to go around, so people can buy and sell them easily. When providing liquidity to a pair of tokens, you receive back a Liquidity Provision token (LP token).
Yield farming is a way of earning SDAO rewards for helping to make the big pile of SDAO and ETH work better. When you do yield farming, you're staking your LP tokens to help make the pile bigger and more stable. As a reward for doing so, you get to receive some of the SDAO rewards that are given out.
SingularityDAO is a platform that makes it easy for people to provide liquidity and do yield farming.
Liquidity provision
GitBook
How to provide Liquidity
How to Yield Farm LP Tokens
GitBook
How to Yield Farm LP Tokens
Last modified 11mo ago