Topic: Yield farming vs Staking - page 3. (Read 351 times)
The main goal is earning a reward in which ever route you chose to take. To me, yield farming will be a better choice ( i.e providing stable coins liquidity to a pool) especially in the bear period. Staking is also good but most staked coins tends to lose their value as a result of market downtrend. And this can hinder the amount of profit that could have been made. They both have more similarities but slightly difference left for users to figure out.
Both processes are quite similar, as other users have already suggested, with the main difference being that staking is focused on earning rewards for holding and validating transactions on a blockchain network, while yield farming and liquidity mining are focused on providing liquidity to decentralized exchanges and liquidity pools to earn rewards. Both sound way too similar, and to be honest, the result is practically the same for the end user. As someone who has been active in liquidity mining and staking and has participated in both investment types in the past few years, I never distinguished any differences and also believed that it's practically the exact same thing. Both options share the same risks regarding smart contracts, vulnerabilities, exploits, and impermanent loss.
By staking you contribute to the security of a blockchain, and this is good.
By lending you contribute to the liquidity of a market, and this is good.
One man's meat is another man's poison.
By lending you contribute to the liquidity of a market, and this is good.
One man's meat is another man's poison.
I've came across "yield farming" which looks quite similar to staking. You basically go on a "hunt" for "De-Fi" platforms which offer the best rates for your stablecoin (or token) holdings. This is done in a non-custodial manner through the use of smart contracts. On staking, I can basically "delegate" my coins to a validator and earn daily income.
The question is, do the validator you delegates your coins to have access to the wallet since it is a smart contract, because what we are trying to separate is custodial and none custodial which also represents the freedom by both you and the smart contract on the control of the connected wallet. So this ball down to the same thing which is, centralization/control over your coins.
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What I want to know is if "yield farming" is better than staking. An overview of the advantages/disadvantages between the two would be nice. Any clarifications would be greatly appreciated. Thanks in advance. 
As far as I know, both yield farming and staking involve one thing which is the loss of control of your coins but the difference is that, in staking, you have to send your coin out of your wallet to the API smart contract address on the platform, but in yield farming, you does not need to send your coins to a smart contract but have to grant access to them through wallet connect using a smart contract. The similarity between both of them is that, there has equal access to the control of the assets you provided for qualities so a scam smart contract can go away with your coins at any time.
I've came across "yield farming" which looks quite similar to staking. You basically go on a "hunt" for "De-Fi" platforms which offer the best rates for your stablecoin (or token) holdings. This is done in a non-custodial manner through the use of smart contracts. On staking, I can basically "delegate" my coins to a validator and earn daily income.
What I want to know is if "yield farming" is better than staking. An overview of the advantages/disadvantages between the two would be nice. Any clarifications would be greatly appreciated. Thanks in advance.
What I want to know is if "yield farming" is better than staking. An overview of the advantages/disadvantages between the two would be nice. Any clarifications would be greatly appreciated. Thanks in advance.
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