DeFi yield farming has become one of the most prominent ways through which investors can earn crypto within the decentralized finance space. It offers a means of generating passive income by putting digital assets to work, locking them up within liquidity pools, after which they generate rewards. Compound interest allows your money to grow more quickly - and even exponentially over time. Are you putting your $FOX tokens to work? With ShapeShift Farming Opportunities you can earn on your tokens: https://fox.shapeshift.com/fox-farming.
The new v2 platform has features built-in to allow every user to put their digital assets to work and earn yield without giving up control, or having to ask for permission - no accounts, no kyc. V2 is a huge step towards empowering people looking to enter the DeFi space - and people already in the space - to experience true financial sovereignty and self-custody. It’s just you, your funds, and the blockchain.
Since yield farming began, yield farmers have earned returns in the form of annual percentage yields (APY) that can reach triple digits. This potential return does come at high risk, with the protocols and coins earned subject to extreme volatility and rug pulls. As with the majority of instruments in the DeFi space, there is risk but it’s all about minimizing the risk enough for you to be comfortable with using the decentralized application, looking into the team behind the application, its transparency and diligence with security audits.
The launch of the v2 ShapeShift app was the first of many large steps the ShapeShift DAO has taken in the DeFi and yield farming space this past week. With v2’s yield farming capabilities expanded through the integration of Yearn vaults, ShapeShift will reward users with FOX tokens for engaging with DeFi on their app. Hodlers can deposit into the Yearn vaults at https://app.shapeshift.com/defi/earn.
This stable, consistent, and multi-chain approach v2 brings to the DeFi ecosystem is attractive to traders and farmers alike who see how inconsistent and difficult trading on pure asset appreciation can be and desire a consistent and healthy revenue from their digital assets without the chaos and risk of chasing the next big pump or farm pool.
Why Farming With ShapeShift is Better?
V2’s expanding capabilities as a cryptocurrency-agnostic platform (users can make cross chain transactions on the ShapeShift app) will continue to improve the application as the adoption and integration of new assets grow. Unlike other platforms, ShapeShift will integrate multi-chain utility while providing users the benefits of an aggregation engine - giving users the best price regardless of the market.
High APY farm pools are highly competitive, with extreme volatility that often forces liquidity farmers to switch back and forth between platforms and chains. Farmers pay gas fees every time they leave or enter a liquidity pool. This friction from hunting for high-APY LPs is almost completely inefficient during times of high network congestion.
Through collaboration with Yearn and other platforms, ShapeShift v2 combats this issue through the new addition of vaults - a feature that implements automated yield farming strategies. In order to assist in maximizing farmers returns, the ShapeShift vault will constantly rebalance its assets across all of DeFi’s LPs to participate in the very best yield farming opportunities - doing the hard work for you so you don’t have to.
How is This Sustainable?
The v2 vault will perpetually reinvest the profits earned for the DAO to increase its size and scope - leading to higher earnings and more opportunities for users to yield farm. ShapeShift will reward users with FOX tokens for engaging with DeFi and is able to do this through creating affiliate partnerships with DeFi protocols. ShapeShift rewards users from their portion of the revenue share model which allows users to enjoy the best yield, a unified user interface, all with no added costs or diminishing returns.
Other projects in a similar vein charge a fee for their front end, which gives v2 a competitive advantage in the liquidity farming space. As more earning opportunities come to light, ShapeShift becomes the one-stop-shop to grow a healthy, stable yield on multiple digital assets.
In Summary
The launch of the ShapeShift v2 platform and its continued growth within the DeFi space is a declaration to the world that the open-source, non-custodial, and blockchain agnostic ability of operating is here to stay. The v2 platform launch is one of the most crucial milestones in achieving the goal of complete decentralization for the ShapeShift DAO - read more here. Opportunities that are provided to users will continue to evolve as v2 grows and evolves itself which makes it a great asset for any trader or liquidity farmer to have in their arsenal.
Your keys, your crypto at: app.shapeshift.com
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