A Simple Explanation of DeFi and Yield Farming Using Actual Human Words

A primer on yield farming, liquidity mining, automated market making and all the other terms shaping the brave new world of decentralized finance.

Jul 22, 2020 at 7:10 p.m. UTCUpdated Sep 14, 2021 at 9:34 a.m. UTC
Jul 22, 2020 at 7:10 p.m. UTCUpdated Sep 14, 2021 at 9:34 a.m. UTC

A primer on DeFi and yield farming. We'll also cover liquidity mining, automated market making plus the other terms shaping this brave new world.

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

This episode is sponsored by Bitstamp and Crypto.com.

Today on the Brief:

  • U.S. forces China’s Houston consulate to close
  • U.S. previously owned housing market grows 20.7% May to June
  • Insider stock selling reaches record levels

DeFi and Yield Farming, Simplified

Today’s episode of The Breakdown is a primer for anyone who has lost track of the terminology surrounding decentralized finance. In it, NLW goes over:

  • DeFi’s background and origins
  • Market making in a traditional context
  • Automated market making 
  • How liquidity mining incentivizes economic participation 
  • How decentralized exchanges differ from centralized exchanges 
  • What “yield farming” actually means
  • Why we shouldn’t be concerned about the Yield Farming bubble

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

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