BEES.Social Offers Guide to Yield Farming
BEES.Social has revealed that they have posted videos on the website to serve as a BEES.Social guide to yield farming. In this series of videos, Vince Wicker, from the BEES.Social crypto community, explains in simple terms what is DeFi, the reasons for having liquidity pools and liquidity providers, what are smart contracts, and what are automated market makers. A bonus video is also provided to explain how to protect a crypto wallet from hackers.
Meanwhile, it is important to note that BEES.Social is a decentralized autonomous organization (DAO), which is the first of its kind in the world, that is focused on educating regular people on how they can benefit from the crypto revolution. They want to stress that they are not an investment group nor are they day-traders. They are a community that understands the value of effective communication, transparency, respect, and sharing of vital information.
Members have expressed highly positive testimonials about the benefits of being part of BEES.Social. For example, Richard H. has given them a five-star rating and said, “Being a part of BEES.Social is an absolute bright spot in my day, everyday, real people being of real service to their fellows in a space that’s new and intimidating. It’s a real joy to help others, what an amazing gift I’ve been given. Thank you BEES.Social community.”
In the videos, Vince Wicker explains what is decentralized finance (DeFi) yield farming, DeFi yield farming terminology, what is DeFi, smart contracts on the Ethereum Network, what are liquidity pools in crypto, liquidity providers and the crypto trading fees, automated market makers in the smart contracts, how DeFi yield farming works, Balancer liquidity pools and curve, staking in BEES.Social liquidity pool, and three ways that yield farmers make money.
It is DeFi because it is the opposite to the conventional centralized finance in which there is a powerful institution or organization that is at the center of an entire financial transaction. In contrast, in DeFi, all of the transactions, such as saving, lending, banking, and more, are all self-executing programs that reside in the Ethereum blockchain that is a network on which all these programs run. This is a peer-to-peer network where no one can control these programs or interrupt what they are doing. One type of these decentralized apps in the DeFi network is known as a smart contract and one type of smart contract is a liquidity pool and it is with these liquidity pools that people can do yield farming.
Those who participate in cryptocurrency are liquidity pool providers. Liquidity pools are cryptocurrencies that are widely traded that many people have just bought and where they keep their gemini account or coinbase. This liquidity allows sophisticated participants in the game to use that to make trades. However, whenever they use those funds in the liquidity pool, they need to pay a trading fee. This trading fee is paid to everyone in the liquidity pool with the amount paid being based on the percentage of a person’s contribution to the pool. As a liquidity pool provider, a person can contribute capital to the liquidity pool, and other sophisticated participants can utilize those funds to do perform their trades but they will need to pay to those who contributed capital in the form of trading fees that go to a person as a member of that liquidity pool.
There are automated market makers that are not a company but are simply a set of programs that are running that enable people to take part in a liquidity pool. Thus, not only would people benefit from the appreciation of the digital asset but also earn from the trading fees. Yield farming provides the third way of earning from the capital contributed to a liquidity pool, in the form of tokens.
What makes the cryptocurrency transactions secure is the blockchain, which has the capability to resolve the dilemma of trust in digital assets, offering better identity management through real peer-to-peer economy.
Those who would like to get updated on the latest yield farming news can can check out the BEES.Social website, or contact them through the telephone or via email.
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