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Crypto farming has created a craze across the entire DeFi space. With returns in excess of 100% in many cases, crypto farmers are winning over regular investors and traders to their side. This veritable gold rush has resulted in launching multiple decentralized protocols, all offering crypto farming. Algebra Finance is a decentralized protocol that provides its customers with all possible ways of getting the highest APR with the lowest risks. What is crypto farming? How does crypto farming work on Algebra? How to get the highest APR –- keep on reading for all of that and more!
What is Crypto Farming?
Crypto farming includes locking up your crypto assets for a certain time period and getting rewards in the form of a yield (APY) or a rate (APR). You can compare it to earning interest in a bank for keeping your assets there.
To start farming, you need to provide liquidity to a pool of tokens first, and then farm those tokens to get a yield or rate.
Best Crypto Farming Platform Algebra Finance is the first concentrated-liquidity DEX with built-in farming and adaptive fees, which significantly reduce impermanent loss risks. Built on Polygon, Algebra plans to expand to other blockchains in the future.
Let’s bring you up to speed on why Algebra claims to be the best place for crypto farming:
- Adaptive fees guarantee the right balance between traders and liquidity providers. The unique dynamic fee model allows for adjusting the fees based on risks, volatility of assets, trading and liquidity pool volumes, along with other factors.
- Built-in farming allows users to farm their liquidity provider tokens right on the platform, and earn more with the highest APR on the market for certain pairs.
- With concentrated liquidity, users can choose the price range within which to provide liquidity. It results in deeper liquidity for traders and higher earnings for liquidity providers.
Get Rewards in Stablecoins on Algebra
Famous for its lucrative farming events, Algebra is launching a new one with rewards paid out in stablecoins which becomes essential in minimizing the risks of impermanent loss. The conditions are the following:
- Farming Pair: $MATIC / $USDC
- Approximate APR: 37%
- Duration: 1 week
The maximum amount of possible liquidity locked is $700,000, with total rewards of $5,000 in USDC to be distributed among all farming participants. To join this farming, you need to provide liquidity to a $MATIC / $USDC pool in advance and enter between April 29 and May 3.
How Does Crypto Farming Work on Algebra? Let’s go through step-by-step on how to farm crypto on Algebra and get the highest returns with minimum risks. For the upcoming farming event with USDC/MATIC, the instructions will look like this:
- Provide liquidity
Firstly, you provide liquidity to USDC/MATIC and start earning trading fee rewards. From liquidity providing, you will earn up to 2% from trading fees.
- Start farming
By farming your tokens, you add 37% to the existing fees you earn from trading. You can go for 2 types of farming: Infinite and Limit.
- Boost liquidity
When entering a Limit Farm, you will be offered several options to increase your liquidity at 5%, 10%, and 30% if you’re a holder of the ALGB native token. Consequently, you will get bigger returns distributed in USDC. The percentage depends on the amount of ALGB native tokens you hold.
- Stake ALGB native tokens
After farming finishes, you can go and stake your ALGB tokens so that they don’t sit on a fence but earn rewards and multiply your overall capital.
Crypto farming has proved to be an efficient source of income these days. By farming tokens, although there involves risk, it’s possible to see high returns on your investment compared to other ways on the market. Careful calculating and managing the risks, plus accessing a platform functionality wherein you can farm crypto, will result in leveling up your finances. Hopefully, you’re now fully armed to start farming tokens and earn the highest returns on Algebra using all the features this platform offers.
This content should not be interpreted as investment advice. Cryptocurrency is a volatile market; do your independent research and only invest what you can afford to lose. New token launches and small market capitalization coins are inherently more risky than large cap cryptocurrencies. These tokens are subject to larger liquidity and market risks
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