Farming VS Staking – Dip in the pool, or rule the pool.

Where can you find a financial system where you can be a lender, borrower, speculator, investor, or all at the same time? The answer is, in DeFi, or decentralized finance. Not since the dawn of the age of cryptocurrencies that a financial revolution like DeFi would take the world by storm and provide various opportunities for anyone dabbling in digital assets to earn infinite return accordingly using smart decentralized protocols.

The current financial mechanisms still dwell much on traditional and often obsolete systems where, as simple as opening a bank account or requesting for a loan puts you through taxing KYC (Know-Your-Customer) procedures that may take you days or weeks before getting approval, or disapproval. That leaves the world having as many as 1.7 billion adults unbanked and financially underserved to this day.

What makes DeFi an exciting and adventurous space to explore is that it is still highly unregulated, virtually without restrictions, permissions, and third-party mediations. Barriers to entry are still unknown and anyone from a user to a programmer can apply their entrepreneurial, business, and technical skills to bet, grow, and claim their stakes.

DeFi is essentially built on the Ethereum ecosystem and, therefore, ERC-20 tokens and stablecoins are standard deposits such as DAI, USDC, USDC, and others. Two closely related returns mechanisms are presented here and matched up to give you a basic idea of how to profit from DeFi as you help the crypto project of your choice flourish in the process.

Farming

Farming or yield farming is a consequence of DeFi actions to make participants earn tokens while using the crypto project’s DeFi applications. Each and every time a new project emerges, it has become imperative that it offers brand new tokens or rewards to be earned by incoming users. And as more and more join in, the demand begins to increase that essentially makes the project and its token drive up in value. In simpler terms, you contribute your crypto to the project via a liquidity pool and in return, you are rewarded with incentives. Since the risk is higher, so is the yield.

As you have taken the risk to invest in a basic start-up project with a relatively small market cap, little experience, and low trust rating, the team behind the project tends to be more than happy to highly reward those who believed in their vision-mission-action.

Staking

Staking takes you a notch further from farming by allowing you to participate in the project’s governance, have voting rights, certain influence over the project’s designs and processes, among others. By being a core member of the crypto project, you participate in creating the blockchain for the Proof-of-Stake coins (PoS). As the substantial amount of capital you inject into the network project is safe, clear, and specific, investor rewards are moderate and definitely lower than yield farming.

Farming VS Staking

The goal of both is clearly that of profit, giving you an opportunity to invest your funds in start-up crypto projects that have small market caps with projected high-value returns in exchange for providing liquidity. Yield farming can be vague and risky as you contribute to the liquidity pool for lending purposes. Staking may yet give you, aside from profit, a sense of fulfillment for being part of a project’s blockchain construction.

The Xion Global Way

Xion is a decentralized finance application, where you can earn up to 15% compound interest on your DAI cryptocurrency or you can earn trading fees when farming with xDAI. Both of which will reward you in XGT tokens, however farming will earn you more XGT than earning interest.

You can also use your XGT to purchase products from our Xion merchants listed on our Shop page and get up to 100% cash back rewards in XGT from credit card and crypto purchases.

Xion Liquidity Pool

In order to give the XGT token a real value, it needs to be tradeable with other assets, preferably to a comparatively stable token like xDAI. In order to do this, we have created an xDAI <-> XGT liquidity pool, where anyone can provide liquidity and trade xDAI with XGT and vice versa, with a 0.3% fee for every trade.

Our smart contracts have been built by industry-leading experts with many years of experience in the DeFi and security space. Through Honeyswap we are making use of the heavily battle-tested Uniswap V2 Contracts, allowing our users a safe and secure trading and farming of XGT.

Our trading pair xDAI-XGT is already in the Top 10 pairs on Honeyswap, with a total value locked $110k+ in just a few days and current APY at 132.10%. Farmers can either use Honeyswap or go directly to Xion.finance to start farming or swapping XGT <> xDAI.

Additionally, incentive mechanisms have been built around accruing high liquidity for XGT, in order to protect our users from price swings.

Any liquidity provider can withdraw their shares of the pool at any time, at which time they will also receive their share of up to 0.3% of trading fees that have been accrued while they were part of the pool.

Start Simple Farming on Xion

How Does It All Work?

1.Connect Wallet. Simply create or connect your Torus Wallet.

2.Purchase xDAI. Purchase xDAI to start farming with XGT.

3.Earn Trading Fees. Deposit xDAI to easily earn a % of crypto off every trade.

4.Get Rewarded. You will automatically receive 33% more XGT rewards.