Earnity’s executives Dan Schatt and Domenic Carosa Earning Income Through Yield Farming

Earnity, under the leadership of Dan Schatt and Domenic Carosa, seeks to provide users with access to the world of decentralized finance (DeFi). Since its emergence, DeFi has brought to life the promise of community-driven, permissionless, and trustless financial services. It has also provided ways for people to generate active and passive income. One avenue to earning income from DeFi is through yield farming. 

Also sometimes referred to as liquidity mining, yield farming involves lending or staking cryptocurrency coins or tokens to receive rewards due to transaction fees or interests. It is similar to depositing money into a bank account, with the funds being used by the institution to allow the depositor to earn money from interest. Some significant differences are that yield farming can be more profitable but more volatile. 

Understanding how yield farming works requires some knowledge of liquidity providers and liquidity pools. 

Powering Marketplaces

Liquidity pools are smart contracts that contain funds collected from liquidity providers. The DeFi protocol powers marketplaces where people can lend or borrow tokens. To use this marketplace, the borrower has to pay specific fees, which are then used to compensate liquidity providers. Yield farmers typically use liquidity pools to deposit their tokens and earn incentives. 

Most yield farming protocols are typically done using ERC-20 tokens on Ethereum. Consequently, yield farmers are paid the same token. However, there might be changes in store because the advancements in DeFi applications, such as cross-chain bridges, will allow yield farming to run on other blockchains that can support smart contracts. 

There is a wide array of ways to earn from DeFi, with yield farming being just one of them. Dan Schatt and Domenic Carosa plan to develop the Earnity platform built upon openness, accessibility, and intuitiveness, enabling personal financial sovereignty and independence made possible by DeFi and cryptosystems.