Stablecoin Use Cases DB
DeFiIntermediateConditional

Outcome may vary by conditions such as jurisdiction, regulation, or platform policy.

DeFi Yield Farming Guide

Learn how to earn interest by depositing stablecoins.

What is DeFi Yield Farming?


It refers to depositing stablecoins into DeFi (Decentralized Finance) protocols and receiving interest or governance tokens as rewards. It is similar to bank deposits, but you can expect higher interest rates because there are no intermediaries.


Main Methods


1. Lending Protocol Deposit: Lend stablecoins to protocols like Aave or Compound and receive interest.
2. Liquidity Provision (LP): Provide liquidity to decentralized exchanges (DEX) like Uniswap or Curve and receive a share of transaction fees.
3. Staking: Lock assets to contribute to the security or operation of a specific blockchain network and receive rewards.

Precautions


  • Smart Contract Risk: Asset loss may occur due to code errors or hacking.
  • Market Volatility: If the price of the reward token drops, the overall rate of return may decrease.
  • Rug Pull: Beware of scams where developers stop the project and run away with the funds.
  • Related Tags

    #DeFi#Aave#리스크관리
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    DeFi Yield Farming Guide | KRW Stable