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A Simple Explanation of DeFi and Yield Farming Using Actual Human Words

A primer on yield farming, liquidity mining, automated market making and all the other terms shaping the brave new world of decentralized finance.

(studiostoks/Shutterstock)
(studiostoks/Shutterstock)

A primer on DeFi and yield farming. We'll also cover liquidity mining, automated market making plus the other terms shaping this brave new world.

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This episode is sponsored by Bitstamp and Crypto.com.

Today on the Brief:

  • U.S. forces China’s Houston consulate to close
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  • Insider stock selling reaches record levels

See also: Why TikTok Doge Is Everything About 2020 Finance in One Story

DeFi and Yield Farming, Simplified

Today’s episode of The Breakdown is a primer for anyone who has lost track of the terminology surrounding decentralized finance. In it, NLW goes over:

  • DeFi’s background and origins
  • Market making in a traditional context
  • Automated market making
  • How liquidity mining incentivizes economic participation
  • How decentralized exchanges differ from centralized exchanges
  • What “yield farming” actually means
  • Why we shouldn’t be concerned about the Yield Farming bubble

See also: What Is Yield Farming? The Rocket Fuel of DeFi, Explained

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

Remarque : Les opinions exprimées dans cette colonne sont celles de l'auteur et ne reflètent pas nécessairement celles de CoinDesk, Inc. ou de ses propriétaires et affiliés.

Nathaniel Whittemore

NLW is an independent strategy and communications consultant for leading crypto companies as well as host of The Breakdown – the fastest-growing podcast in crypto. Whittemore has been a VC with Learn Capital, was on the founding team of Change.org, and founded a program design center at his alma mater Northwestern University that helped inspire the largest donation in the school’s history.

Nathaniel Whittemore