Yield farming is an essential part of the cryptocurrency industry today, especially in the rapidly growing DeFi sector. Many enthusiasts are looking for the most lucrative options on the table. Digitex's Blockfarm platform wants to introduce similar rewards in various cryptocurrencies, putting a slightly different spin on the traditional concept. Let’s take a closer look.
Growing Interest in Decentralized Finance (DeFi)
There has been a growing interest in DeFi solutions as investors seek to earn yield on their assets. At a time when interest rates are hovering around zero - or below it - in traditional finance, high APYs through yield farming become increasingly attractive. Rising commodity prices, combined with appealing APYs across the various yield farming platforms can create attractive earning opportunities.
As competition heats up among DeFi yield farming protocols, it becomes more essential to stand out from the rest. Moreover, there is an influx of existing crypto service providers branching out into decentralized finance lately. A remarkable change, although an understandable one. Given the momentum affecting this industry segment, no one can risk being left behind.
Digitex, best-known for providing access to zero-fee cryptocurrency futures and spot trading, is the latest to capitalize on the demand for yield from DeFi investors by introducing a yield farming platform of its own, housed within the Digitex exchange. Through Blockfarm, users will be able to earn a passive income on their holdings as of Friday May, 14. To do so, they will need to stake DGTX to earn rewards in multiple cryptocurrencies. The first reward to earn is Ether (ETH).
Ethereum Demand is Growing
The option to let users earn ETH comes at an interesting time. Overall demand for Ether appears to be picking up, judging by the price momentum. As investors and speculators actively seek exposure to the second-largest cryptocurrency, any opportunity to passively accumulate Ether will become of interest. Through Blockfarm, users can collectively earn up to $50,000 worth of ETH in the first 30 days, creating an additional incentive to take part.
It’s important to note that, unlike staking ETH for rewards on any other platform, by staking DGTX through Blockfarm, users can unstake at any time. This means that they don’t have to lock away their ETH to wait for rewards until the transition to ETH 2.0 is complete.
Another benefit of staking through the Blockfarm platform is its clean and simple interface that makes it easy to use. One major downside to yield farming today is how most platforms and protocols are complex to interface with. It is not an intuitive user experience and one that requires switching between different platforms and ecosystems. Digitex's Blockfarm wants to lower the barrier by making it simple for anyone to take part and keeping users within the Digitex platform. The APY will vary depending on how many users take advantage of the platform. However, Digitex has been running a successful yield program via Uniswap for around six months, and the APY ranges between 35% and 150% - extremely competitive rates.
As more players explore opportunities in yield farming, the landscape will grow more competitive. To attract new users, a better user interface and user experience will be mandatory. There is still a lot of work to be done in this segment, as the current generation of protocols can leave much to be desired. Blockfarm may provide a better option to some, particularly those users who prize earning a high yield above interacting with a complex decentralized protocol.
DeFi must keep growing and evolving. Providing better - or different - rewards like Digitex is doing is one way of doing so and helping to achieve broader mainstream adoption at the same time.