Did you know that American Express alone gives away over $7 billion in rewards of various types to its customers each year? So far there is no service that does not offer rewards or refunds, the higher the competition and the more valuable it has become to attract customers.

Something similar is happening in the world of DeFi, the only difference is – if managed well – this process can turn into a real source of income. We are talking about Efficient Agriculture: literally means “to earn a return”, but in practice it means to receive additional rewards on already earned commissions.

As explained earlier in this article, decentralized finance allows you to make your money available as if we were financial operators or banks. All we need is a platform that connects supply and demand, allowing us to connect our wallet and deposit cryptocurrencies.

But here a problem arises: which of these platforms to use?

There are hundreds of them, all the same, and they all need our crypto so much that they are willing to create incentive programs. even more than 1000% annual yield on paper. No, we didn’t drop a few more zeros: the theoretical rewards could indeed reach and exceed this figure.

In fact, you should know that each platform has the possibility to launch its own cryptocurrency and distribute it as it sees fit: and is there a better use case than giving their money to those who make it available? But be careful, this return has nothing to do with commissions from our liquidity. This is an added benefit of a decidedly different nature: if commissions are usually paid in the same cryptocurrency we provide, in the case of Yield Farming a new coin minted for the status and its true value continues to be shown.

The question we should always ask ourselves is: Why would this token have any value? Why would anyone want to buy it six months from now? What can I do with it and what kind of power or benefit does it give me?

These are the questions we must answer before choosing a Yield Farm program, and above all, before choosing to hold or sell our newly acquired cryptocurrencies, because the only price we are sure of is the current price, we are not given any guarantees. future

To overcome these limitations, many platforms have begun collaborating by creating joint incentive schemes and allowing one to use the other’s cryptocurrency on their platform. This creates new use cases that make their value more stable. We will discuss this issue in more detail in future articles.

Finally, it should be noted that Because Yield Farming is an additive nature, it involves limited risks on start-up capital.. However, we must be very careful with the platform you choose and remind us that among the many platforms there are also scams that take advantage of the promise of very high returns. That is why it is very important to verify the reliability of the platform.