You heard the news that Merge has locked 1.5 million tokens for 12 months in a liquidity pool for farming and were like... wait? umm whut? What does that mean in English?!
Entering the world of cryptocurrency can be confusing enough, and thats before you start to discover the entire ecosystem. Once you have the hang of wallets, transferring, buying off exchanges and perhaps even bridging across chains- you will be looking to grow your portfolio- for maximum growth and minimal input.
What are some easy ways to grow your portfolio? How do I compound my growth?
Lets take a basic look at yield farming crypto for noobs
Crypto yield farming is the practice of staking or locking up cryptocurrency with the expectation of a return or reward, sometimes another crypto token, and sometimes more of the same one. The practice allows traders and investors to stake their digital assets and earn higher rewards.
Yield farming is a way for traders and investors to earn cryptocurrency or digital assets without constantly trading and paying transaction fees. Investors can reap the benefits of numerous crypto projects by staking and locking up their assets. Not only that but if you compound your yield over multiple months you could potentially turn your initial investment into a handsome profit!
Cryptocurrency yield farming is not new, however the practice has recently become a more popular strategy for those that want to earn passive income. As technology grows and cryptocurrency adoption continues to rise, there will be more ways for investors and traders to generate additional revenue through their digital assets.
The Project Merge is continuing evolve and grow for their community and offer opportunities to accumulate more of their tokens. Hodlers can already stake their tokens on stakecube.net to earn more, or own masternodes for handsome returns. Recent news from the team that the ETH and BSC chains have been added also opens up whole new chains of possibilities. Liquidity has been added and locked in the pools for 12 months on PancakeSwap by the team- this is to reassure depositors that the team are here to stay.
Rewards for the merge farming pools will compound over time, and that's the beauty of this form of investment.
The example as explained by the team on their Telegram-
'All merge rewards in bridge pool are sent for farming. Although Merge in the bridge will grow so weight of bridge pool will increase over time.'
Week 1- 1 500 000 Merge & stake 200 in rewards. 200 Merge sent to farmers
Week 2- 1 500 200 Merge & stake 201 Merge sent to farmers
Week 3- 1 500 402 Merge $ stake 202 Merge sent to farmers
This is how the pool grows and the compounding begins.
There are many more ways to yield farm and we have just delved into a little here. I encourage you to look more into it as it is an amazing way to grow your portfolio. There are farms for stable coins if you are looking for a less risky investments, while you can generate 10 000% returns if you are willing to take risks, and occasionally suffer a rugpull in the process! I myself have some merge already so I am keen to farm more and work my way towards the 10 000 needed for a masternode. Hopefully we see some of the other project associated with Merge like Absolute, BlockLogic jump on board and offer their tokens for farming as a pair with merge so I can accumulate some of those as well!