The global crypto currency and NFT markets are witnessing early signs of a rebound in investor interests, following months of consistent decline in volumes as well as in their prices. The latter is evident from the recent rally in some of their prices. However, it is difficult to sail through the crypto markets without constantly navigating through the latest trends. One such trend is yield farming.
Investor interests in crypto can gain further momentum if investors are able to earn from their crypto holdings. It is here that the role of yield farming comes into play. Yield farming is the process of lending crypto currency assets to Decentralised Finance (DeFi) protocols, so that the assets and liquidity can be utilized by others. In return, the original investors are rewarded with more crypto currency tokens.
In other words, yield farming is a process that allows crypto currency holders to lock up their holdings, which in turn, provides them with rewards. The process lets you earn either fixed or variable interest by investing crypto in a DeFi market.
With yield farming, crypto currency that would otherwise be sitting in an exchange or in a wallet is lent out via DeFi protocols or locked into a smart contract in order to get a return. At the moment, yield farming can provide more lucrative interest than those offered by traditional banks, but there are risks involved as well.
Yield farming can give you handsome profits if you adopt a project early enough and if it shoots up rapidly in value. However, interest rates can be volatile and that makes it difficult to predict what your rewards could look like in future.
Problems in yield farming
Although there are real benefits to yield farming, the process, as it exists now, also comes with its own set of problems. Some DeFi projects may contain vulnerabilities, which can potentially erode the entire portfolio of the customers or investors.
For instance, there is a lack of any insurance mechanism for investor funds. Besides, if any investor loses his or her wallet or dies, the current yield farming instruments do not have any way of rescuing his or her funds.
In addition, investing in yield farming protocols calls for some experience in DeFi and involves spending considerable amounts of time on researching and reviewing new DeFi projects. The latter is over and above the mandatory task of managing one’s own portfolio. Then, there are the risks of scams and unintentional bugs, as all computer codes contain bugs.
Besides, a lot of DeFi products are not user-friendly and some of them require users to have 7-10 different on-chain transactions in order to provide liquidity and enable re-investment of the farmed tokens.
In order to address the above issue, Uno.farm has a feature called Single Asset Entry through the deposit button via any one token. As an example, users can provide liquidity to the USDC-MATIC pool via DAI or ETH. it will be swapped by the 1inch Aggregation Router automatically into USDC and MATIC.
It will then be provided to the DEX and the LP token will be generated and put on the farm. Later, when the farm provides the farm tokens, they will be sold back into USDC and MATIC, thereby creating a re-invest cycle with the most optimal frequency.
The current yield farming instruments offer little profitability and are not very convenient to use. It is difficult to analyze user’s profit from different protocols and there is no clear tool for optimizing profitability. All these factors create a high entry barrier for new users or investors in yield farming.
Yield aggregator’s role
The role of yield aggregators is quintessential in effecting a proper yield farming protocol. Yield aggregators essentially automate the process of staking and collecting the generated rewards on behalf of the users or the investors. They also optimize gas fee spending using different strategies, such as moving tokens around different platforms and maximizing yields via auto compounding.
Yield aggregators fight for the best returns for the users or investors in a field where most issuance of tokens that are farmed is limited. The most successful yield farmers maximize their returns by deploying more complicated investment strategies. These strategies often involve staking tokens in a chain of protocols in order to generate maximum yield.
Uno.farm is a cross-chain auto-farming solution with automated strategies and smart analytics. It plans to offer users the best yield generation opportunities from their investments in DeFi products. The UNO Farm solution will enable users or investors to easily enter the best DeFi yield opportunities and leave their farms for several months, without the need to manually do the re-compounding and liquidity swaps of their own investment corpus.
The Uno.farm system will determine whether to move the liquidity on the basis of market conditions, yields and other factors. It will provide a unified interface to all the major farms and liquidity pools, apart from automating and maximizing the yield generation.
Uno.farm will continuously analyze yield parameters in hundreds of carefully selected pools across the entire DeFi ecosystem. Uno.farm will also ensure that each user’s liquidity is located in the most efficient and safest of all pools, thereby making Uno.farm more efficient than many of its closest competitors.
The Uno.farm Autostrat feature will automatically switch between the same pairs in different pools for highest yield and automatically convert any token to find the best place where liquidity should be parked, The cross-chain feature of Uno.farm will bridge the liquidity across the EVM and non-EVM compatible blockchains to catch up the best APY in the whole DeFi market for Uno.farm users.
While putting all the safety elements in place, Uno.farm offers a simplified and user-friendly interface with a Single Asset Entry to the pools. It has advanced portfolio analytics that can give convenient analytics about the user’s portfolios. Besides, a fiat currency gateway will be implemented to allow fiat currency deposits and withdrawals. These measures are aimed at lowering the barriers to entry and reduce the time consumed in the process.
Uno.farm is backed by a qualified team. During the past three years, its three co-founders – Mikhail Perminov, Roman Vinogradov and Alex Sipakov – were running crypto development company Mycelium Lab. They have also helped in creating more than 30 crypto and DeFi custom products.
Michail has more than 10 years of experience and has worked in sectors such as asset management and technology as well as marketing development. He also has an entrepreneurial background in DeFi and software development. He used to run a company with more than 150 employees before starting Uno.farm.
Roman has more than 15 years of professional experience and has worked in sectors such as technology and backend development as well as finance and trading. He has backgrounds in DeFi, crypto, IT and software development. He has been in crypto since 2011, started development in 2013, participated in ETH ICO and has been on the edge of new crypto and DeFi technology.
Alex, the third co-founder, has more than seven years of experience and has worked in asset management and brokerage along with IT. He too has backgrounds in DeFi, crypto, IT and finance.
Apart from the three co-founders, the core team of Uno.farm also has people heading blockchain as well as strategy and advisory. Besides, there are five more professionals who function as advisors to the company.
In all, there are 13 people working full-time on the project, including in-house development and marketing as well as in the business development departments.
Besides, the five advisors to the Uno.farm team are Faraj Abutalibov, Sergei Kovalev, Gabriele Pauliukaite, Vaidotas Norkus and Tim Zinin. All of them have cumulative experiences in crypto, DeFi, blockchain and artificial intelligence, to name a few.
The DeFi sector attracted more than US $106 billion deposits in just one year and most of that money is locked up in various protocols, thereby bringing additional returns for the investors. The market capitalization of the crypto currency market has already exceeded US $2 trillion, which suggests that the DeFi sector is at the initial stage of its development.
The global DeFi market was valued at US $11.78 billion in 2021 and is expected to grow at a CAGR of 42.5 per cent from 2022 to 2030. The acceptance of DeFi led to a profound transformation in the financial sector and that is one of the primary factors driving market growth.
The automated cross-chain liquidity management solution of Uno.farm continuously analyzes yield parameters in hundreds of carefully selected pools across the entire DeFi ecosystem. It also controls that each user’s liquidity is located in the most efficient and safest of them.
Incidentally, the yield farming craze emerged throughout 2020 and into 2021, when users or investors kept looking for ways to maximize their yields. Its importance gained further significance after the broader crypto market witnessed significant volatility and is now displaying early signs of a rebound.
Yield aggregators help to pool deposits together and simplify the experience. Users or investors only need to be concerned about depositing and withdrawal. The yield aggregators take care of everything – from interest accrual to selling the farmed rewards.
Uno.farm makes yield farming more profitable and easy-to-use by auto-compounding with optimal intervals to maximize annualized percentage yields. It maximizes the profit and makes yield farming simple and affordable for users or investors by providing a simple and user-friendly interface and a clear analytics system.
Currently Uno.farm is conducting a tokensale and now it’s an ideal opportunity to invest in the rounds and become part of the team or just provide some liquidity via the protocol and enjoy the optimal benefits of DeFi and yield farming.
For more information on how to invest in Uno.farm, you can also contact them on their Telegram ID – @uno_farm_admin.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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