Crypto Investors and crypto traders are now venturing into the Decentralized Finance and Crypto Yield Farming, by doing so they are letting their money work for them while they are relaxed.
What is Yield Farming?
Yield Farming is whereby investors and traders deposit or lend out their crypto assets into the Decentralized Finance and in return they earn APY's. These DeFi's differ they can be Binance Smart Chain based e.g Venus or they can be Ethereum Based e.g Harvest Finance or Sushiswap.
What is the main difference?
The main difference on these Yield Farming market place is the blockchain they are build upon and the network used. Venus is built upon the Binance Smart Chain. Is is currently on top of the Yield Farming rankings as it has the highest number of assets value locked of $3,283,928,689.43 and the second Binance Based is Bakery swap though its on ranked number 4 on the list with assets worth $353,826,076.95.
Another difference of Binance Smart Chain based is its lower fees, it is a bit cheaper to farm with binance based and if its fees remain low there are higher chances that it can Dominate the Crypto Farming.
Then we have those which are based on the Ethereum with Sushi being the second to Venus with assets worth $1,969,114,214.61 locked in their vaults and Curve following behind with assets valued $1,854,776,987.44 locked. As we can see those based on Ethereum has low number of assets locked in an d this might be due to higher transaction and network costs related with the Ethereum.
Ethereum is popular as it ha the large number of smart contracts and being the second dominant to Bitcoin and Binance is still following behind but it is proving that it can be reliable and cost efficient as compared to Ethereum.