Many members of the crypto community mistakenly believe that DeFi protocols only work on the Ethereum blockchain. But there are alternative platforms where developers can launch their decentralized projects. And on the basis of their blockchains, as in the case of Ethereum, it is possible to earn money through yield farming.
One such platform is Fantom. This project’s blockchain resembles Ethereum, but has its own characteristics.
Table of Contents
What is yield farming?
Yield farming is a way to make money with DeFi protocols. The essence of the system is that an investor should direct his assets to the most profitable decentralized projects in order to make as much money as possible on his investments.
What do yield farmers get paid for?
DeFi protocols offer several ways to make money. The most common are payments to investors for lending assets to projects. Here are some other examples of how it is possible to make money:
- Sometimes the developers of the credit-oriented DeFi protocol need money to start a project. Investors pledge their assets for the startup’s needs. And the developers, in turn, begin to lend money to their customers at an interest rate and then begin to share the income with the investors.
- A digital asset exchange needs liquidity to start trading. Its developers attract assets to run the exchange. In return, they share a portion of the commissions generated by trading with the market participants who provided the funds.
There are many other ways to make money with DeFi. The hardest part is finding the best option among them.
How much can I earn from yield farming?
The average income offered by farming platforms is 5-10%. In some cases, the profit can be much higher or lower.
But it’s worth considering that the profitability of DeFi protocols is adjusted regularly. A project that was profitable today may not be profitable tomorrow. Therefore, most participants constantly move their assets between protocols in search of better deals.
What is Fantom?
Fantom is an open source blockchain network that supports smart contracts. The project is built similarly to Ethereum.
Launched in 2019, this startup gained popularity due to the high speed of transactions and low cost of transfers.
Fantom’s efficiency has also been recognized at the government level. In the summer of 2020, for example, the company entered into a partnership with the government of Afghanistan to track the country’s drug supply chain using blockchain.
Fantom has its own token called FTM. It is used for a variety of purposes including networking, commission payments and project management.
As of March 18, 2022, FTM is ranked 41st in the capitalization rating of the resource CoinMarketCap.
It is noteworthy that FTM began to increase in value at the beginning of 2021: just as the cost of commissions on the network of its main competitor, Ethereum, was increasing.
There are several marketplaces for FTM farming on the digital asset market. Let’s look at the most popular options.
SpiritSwap
SpiritSwap is the leading DEX based on Fantom. Technically, this platform is similar to one of the most popular DeFi protocols called “Uniswap”.
You can make money on SpiritSwap by providing liquidity. The platform shares part of the commissions with users who block assets for the needs of the protocol. SpiritSwap also offers cryptocurrency staking.
SpookySwap
SpookySwap is a decentralized exchange managed by the project’s community. The platform uses the Fantom network to maximize speed, security and scalability of transactions.
You can earn money on SpookySwap by providing liquidity. The platform also has staking offers.
HyperJump
HyperJump is a DeFi protocol, represented by an ecosystem of services based on blockchain games and NFT.
The platform’s developers put an emphasis on gamification to make the DeFi segment more engaging. HyperJump offers rewards for participating in titles and various contests.
Waka Finance
Waka Finance is a decentralized platform that presents several ways to make money based on Fantom. For example, users can earn income by providing liquidity or with the help of other farming tools.
Beefy Finance
Beefy Finance is a decentralized multiplatform for farming automation. It is designed so that it can independently select the most convenient protocols for users.
Conclusions
Ethereum is not a single and unique project on which the decentralized financial market is developing. Today, it has many competitors that attract users due to low fees and high performance.
Fantom is an example of a blockchain that has proven to be in demand due to its favorable differences from Ethereum, and more and more users are starting to use it.
