Earlier, I made an article highlighting the products of SIL (Sister In Law) Finance and gave insight knowledge about “HEDGING” — CLICK HERE TO READ ABOUT IT


Yield farming, or profit farming, is about users trying to get as much income as possible from their crypto assets by providing liquidity for DeFi (Decentralized Finance - Decentralized Finance) protocols.
Basically, yield farming is almost like putting money in the bank. However, instead of depositing fiat money, deposit cryptocurrencies on DeFi exchanges or protocols. The smart contract blocks these costs.
Yield Farming is closely related to the Automated Market Maker (AMM) model. Popular AMM models include Uniswap, Mooniswap, Balancer, etc.

In yield farming, liquidity providers add liquidity to the protocol liquidity pools. A liquidity fund is simply a smart contract that contains money. These groups allow users to borrow, loan, or exchange tokens.
Liquidity Pool collects the payment fee for the purchased transaction when end users perform actions on the pool, such as: This income is returned to the liquidity provider based on the percentage of liquidity presented in the group.
In addition to the costs incurred, some protocols also implement liquidity start-up for the order by distributing native tokens to liquidity providers who have provided liquidity to their protocol (either through the protocol group or a group number specific), called liquidity mining.

The Evolution of Yield Farming

The Yield Farming model quickly became a success when it was introduced to the Compound peer-to-peer lending platform in 2017. Increasing demand for tokens triggered the current mania for farming of performance by an automated distribution method and placed Compound in the market leader position in the DeFi market. Additionally, Compound played a vital role in providing this model, it has grown in popularity and created a strong appeal for crypto investors. Since then, other DeFi projects have developed innovative methods to attract liquidity to their ecosystem.

Yield Farming on SIL Finance

The combination of yield farming and NFT is nothing new in the crypto community. However, starting in 2020, this trend returned due to investor concerns about the security of transactions.
A non-fungible token (NFT) is a type of collectible cryptographic item that was developed from this idea. Unlike cryptocurrencies, where all tokens are created in the same way, each non-fungible token (NFT) is a unique and restricted version.

NFT is considered one of the most important pillars of a new digital economy created by blockchain. There are many projects that use NFT for a variety of applications, such as: B. Games, digital identities, licenses, certificates, and graphics. Including high-quality articles, NFT can even give users an ownership fee.

To take advantage of this opportunity, SIL Finance was one of the first protocols of NFT, a powerful automatic liquidity acquisition performance farm and an AMM decentralized exchange running on the Binance Smart Chain to develop its balance. The SIL Finance Project Yield Farming division helps liquidity providers incentivize their tokens to lock in and benefit from the distribution of profits made by efficiently managing the liquidity pool through smart contracts.
“By using NFT, SIL Finance enables more dynamic operations. Instead of an implementation being tied to a user's wallet address, it is tied to a proof of ownership, transferable NFT, ”explained the SIL Finance developers. That said, when you become a liquidity provider and use your tokens, you not only get rewards, but you also receive an NFT of equivalent value called NFT Farming. "

SIL Finance Income Rewards are based on income from Rewards Rewards funds, liquidity funds funded by SIL Finance Finance or other organizations. DeFi Yield Farming allows cryptocurrency holders to freeze their holdings while waiting for reasonable rewards. Also, it helps users to get fixed or floating rates while investing their cryptocurrencies in the DeFi market. In other words, the yield growing cryptocurrency with the help of the BSC network. In the traditional banking system, when a loan is made, the funds are repaid with interest. The idea is similar to yield farming in terms of cryptocurrencies. A certain amount is borrowed using the DeFi protocol instead of being stored in a specific wallet for a return.

Explore more about SIL Finance through the links below

Website — https://sil.finance/

Twitter — https://twitter.com/sil_finance?s=21

Medium — https://sil-finance.medium.com/

Doc — https://docs.sil.finance/



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