The Decentralized Finance (DeFi) movement has led to innovation in the blockchain industry. Yield farming forms a part of these innovations that have come into existence. It’s a great way for crypto investors to profit from their cryptocurrency holdings using permissionless liquidity protocols.
What is Yield Farming?
Yield farming involves depositing cryptocurrency into a pool with other users to earn incentives or interest. The combined funds are used to execute smart contracts for borrowing and lending services.
How Does Yield Farming Work?
An automated market maker (AMM) model is closely related to yield farming. Liquidity pools and liquidity providers (LPs) are frequently involved. Let’s examine its operation.
A liquidity pool receives money from liquidity providers. A marketplace where users can lend, borrow, or trade tokens is powered by this pool. These platforms charge fees for use, distributed to liquidity providers in proportion to their part of the liquidity pool. An AMM operates based on this.
However, given that this is a novel technology, the implementations may differ greatly. Although it’s not a requirement in most cases, the cash deposited is typically stablecoins like USD, DAI, USDT, USDC, and BUSD.
One of the most popular farming platforms in the market today is OpenMeta.
What is OpenMeta?
OpenMeta is a complete NFT market with high liquidity. It has four main features: NFT Primary, NFT Marketplace, Farm, and My NFT. Users can create, sell, and use advanced NFT services like the first NFTs offering, among other things. It is being nurtured by the MDEX Foundation, which will also provide ongoing support. To solve the current issues of high entry barriers and high transaction costs for NFT users, OpenMeta aims to develop an NFT trading platform with great liquidity and turn into the “OpenSea” in the BSC chain. Here are some of the advantages of OpenMeta:
1. Zero gas fee for NFT minting
NFT minting and interactions with smart contracts are what users pay the majority of when they make NFT transactions. The fees for doing these two procedures in a single Ethereum transaction can go as high as $200. The gap between minting and trading is eliminated as part of OpenMeta’s optimization strategy to address this expensive issue. Thanks to this, users and authors no longer have to pay for Mint NFT.
2. NFT Primary
Another significant component of OpenMeta is NFT Primary. The NFT Primary function in OpenMeta gives project owners the chance to sell premier NFTs with the goal of assisting high-quality projects, artists, collectors and others in issuing their NFT in the primary market. Meanwhile, users will have the chance to directly participate in OpenMeta’s market subscription and get early dividends. With its unique NFT staking feature, OpenMeta not only safeguards the benefits of users, but also increases income. This way, users’ NFT holdings can flow and generate income.
3. Commitment to being the “OpenSea” of BSC.
Looking at OpenSea’s accomplishments, OpenMeta aims to provide a similar function to BSC. It has so far built its technology and products around this objective.
Zero gas fees for NFT minting provide cryptocurrency developers with a better atmosphere to work in without the stress of cost, which promotes the emergence of brand-new spectacular NFTs.
On the other side, NFT Primary and NFT Mining are made to help traders and attract more users to develop into the NFT trading hub on the BSC chain.
The Ethereum blockchain is considered as the foremost chain offering services like yield farming, NFT minting, staking, etc. However, with the advent of OpenMeta, all these and more are now accessible on the BSC chain with some additional perks.
Interested in marketing your blockchain/Web3 project? Please contact Off-Chain Communications for a free consultation and quote.
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