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.

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

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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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