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.
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
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