Why You Should Yield Farm Instead of Stake?
Generating Passive Income
Although crypto investment is relatively new compared to traditional financial instruments, there are still a bewildering number of choices when it comes to deciding where you would like to invest your crypto.
If your aim is to maximize gains while maintaining a passive approach, look no further than yield farming and staking on proof of stake (POS) blockchains. For more information about Yield Farming, do check out our article here.
We will not be going into the details of both approaches. Instead, we will just give you a quick overview of why Yield Farming may possibly be the most profitable option for generating passive income. That said, crypto investments are inherently risky, so always do your own research (DYOR)!
Security-wise, there is no doubt that staking is better than yield farming as there are no fears of smart contract risks or rug pull schemes.
However, staking has the unfortunate disadvantages of low APY and somewhat long and restrictive lock-in periods for your crypto. Validating transactions on a POS-based blockchain network does not reap the same rewards as yield farming. Staking returns range from 5% to 15%, while yield farming can potentially provide you with eye-watering returns of more than 100%. The lock-in period when staking crypto also exposes you to the risk of losses If a bull market suddenly turns into a bear market, and the value of your crypto drops more than the rewards you earn.
The past problems of yield farming earnings getting eroded by high network fees are indeed becoming a thing of the past as more scaling solutions get rolled out on Ethereum, as well as other low-cost blockchain networks such as Binance Smart Chain (BSC). Therefore, moving forward, there is more assurance of retaining your earnings and having the flexibility of moving your cryptos without being crippled by exorbitant fees while yield farming your favorite cryptos.
So, if you want spectacular returns while being passive in approach, you would need to have an appetite for more risks. If that sits well with you, look no further than yield farming as your source of passive income.
Liquidity Farming with Mars Panda
You may have heard that Mars Panda Token (MPT) is listed on PancakeSwap as of 7th September 2021. This is a great opportunity to enjoy the high potential returns of yield farming. All you need to do is participate in MPT liquidity pools on PancakeSwap and see your portfolio grow. But the best part has to be having the peace of mind that you will be investing in a project with excellent tokenomics and bonafide use cases.
The wait will be over soon and we look forward to having you join us in your passive income journey!
About Mars Panda
Mars Panda is a complete eco-system which consists of:
• Games, Social Media and Ecommerce Aggregation
• Yield farming DeFi
• Mars Panda game with NFT game elements
• NFT Marketplace
We aim to fuse mainstream eCommerce and Gaming to the crypto world of NFTs and DeFi, on one seamless, unified platform.
Find us at:
Legatus Global Pte Ltd is an entity that has obtained a regulatory exemption under the Payment Services Act (“PSA”) for digital payments token services. Legatus Global is commissioned to handle the issuance of Mars Panda Token (MPT) as well as the KYC/AML during the private sales and distribution of tokens to private investors. Legatus Global is also handling the process for private sales and distribution.