Any investment involves balancing risk and reward, but few are as risky or as rewarding as “yield farming,” a booming segment in crypto.
Yield farmers put up capital in the hopes of receiving high returns, often in the double digits. “Liquidity mining” is one common strategy in which yield farmers lock up tokens in exchange for fees. Yield farmers, in this way, function as market makers, earning from each transaction while also taking on price risk if their locked-up tokens rise or fall in value.
The AXL platform will enable yield farming for those interested in generating high returns in the form of additional cryptocurrency. This incentivizes liquidity providers to stake or lock up their crypto assets in a liquidity pool based on smart contracts. These can include a percentage of transaction fees, interest from lenders, or a governance token. The yield from it will then be paid out to those who have made deposits and shared accordingly.
