Yield farming vs Staking

[tvplus006]

According to its profit, yield farming far exceeds the income received from staking and in some cases exceeds 1000% per annum. But it is necessary to remember about the risks that are associated with volatility and are called non-permanent losses. In this case, the deposit amount at the time of withdrawal will be less than the amount deposited.

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[terencio]

Staking involves locking your coins in a validator node that secures a proof-of-stake network, but also requires you to follow the network rules, stake for a minimum period, and accept lower returns. The best option depends on your risk appetite, time horizon, and coin preference.

[Tomcolor]

I will choice staking programme with top coins. Because for invest in top altcoins low risk so we can stake long time there. I wasn’t using yield farming but i have use stake in many project. I think both of them way for earn money from crypto so you can choice anywhere as your like.

[Abiky]

Better how? They are build for completely different reasons, other one is keeping chain secure and other is being a liquidity provider. I don't think they are comparable in any other form than their APY

With staking your money is relatively safe, and while yield farming might give you way more APY, but at the same time your money is far from safe as there's a risk of impermanent loss. Not to mention possible DeFi protocol code vulnerabilities.

Based on what you've said, I think yield farming is a lot riskier than staking. That's because smart contracts are usually untested with a lot of vulnerabilities on them. I've seen many cases where hackers siphoned millions of dollars (USD) worth of crypto from a "De-Fi" platform. You don't hear that with native PoS coins.

While this is a fact, I'd have to admit that staking is becoming more centralized by the day. There are so many coins on the market that are controlled by a few players with a lot of money (mainly exchanges). ETH, and BNB are a good example of this. With yield farming, everything is done in a "non-custodial" manner. You'd have to verify and trust the smart contract yourself. Doing both (Yield Farming and Staking) will allow you to minimize risks of loss in the long run. And that's precisely what I'm going to do. Wish me luck!

[Xal0lex]

I've came across "yield farming" which looks quite similar to staking. You basically go on a "hunt" for "De-Fi" platforms which offer the best rates for your stablecoin (or token) holdings. This is done in a non-custodial manner through the use of smart contracts. On staking, I can basically "delegate" my coins to a validator and earn daily income.

What I want to know is if "yield farming" is better than staking. An overview of the advantages/disadvantages between the two would be nice. Any clarifications would be greatly appreciated. Thanks in advance.

In my opinion, staking is more reliable when it comes to staking known coins. Yield farming is often accompanied by earning new tokens by delegating your valuable tokens, such as ETH. Whether those new tokens that are given to you as rewards will have any value is a big question, plus those tokens are often hard to sell due to lack of liquidity or they have high slippage. I would choose staking.

[Myleschetty]

Staking is a kid giving birth to by Yield farming. Yield farming, also known as liquidity mining, is a revenue generation approach pioneered by the DeFi project in which users can earn incentives by lending, staking, or supplying liquidity to decentralized protocols or platforms.
Both Yield farming and staking share the same disadvantage from my understanding one of the disadvantages is lock time span, Smart contract vulnerabilities

[Blitzboy]

Better how? They are build for completely different reasons, other one is keeping chain secure and other is being a liquidity provider. I don't think they are comparable in any other form than their APY

With staking your money is relatively safe, and while yield farming might give you way more APY, but at the same time your money is far from safe as there's a risk of impermanent loss. Not to mention possible DeFi protocol code vulnerabilities.

Based on what you've said, I think yield farming is a lot riskier than staking. That's because smart contracts are usually untested with a lot of vulnerabilities on them. I've seen many cases where hackers siphoned millions of dollars (USD) worth of crypto from a "De-Fi" platform. You don't hear that with native PoS coins.

While this is a fact, I'd have to admit that staking is becoming more centralized by the day. There are so many coins on the market that are controlled by a few players with a lot of money (mainly exchanges). ETH, and BNB are a good example of this. With yield farming, everything is done in a "non-custodial" manner. You'd have to verify and trust the smart contract yourself. Doing both (Yield Farming and Staking) will allow you to minimize risks of loss in the long run. And that's precisely what I'm going to do. Wish me luck!

There is merit in your observation that yield farming is fraught with risks, especially those emerging from the untested nature of smart contracts. The recent heists from DeFi platforms have indeed been alarming.

The issue of centralization in staking is indeed a growing concern. But consider this - is it the nature of the consensus mechanism, or is it reflective of the larger socio-economic inequalities? Perhaps its a systemic issue that transcends the technology.

Your preference for a non-custodial setup in yield farming, though appealing, comes with its own set of challenges. It demands a certain level of sophistication from the users which can be a high entry barrier for many. The strategy of diversifying between yield farming and staking appears prudent, yet the intrigue lies in the precise balance you strike.

[Apocollapse]

Yield farming, staking, interest account, invest in casino bankroll, etc are same, it's about locking or transferring your coins to centralized pool/smart contract/project.

Of course each user has his own preference to judge which method is more profitable and which one is not, but it's better to hold the coins in safe non custodial wallet in order to prevent of losing all of coins we have make. Don't too greedy in cryptocurrency because everyone e.g. including the team of centralized project also want to make money.

[SyndicateLabs]

I don't make too much of a distinction between these forms in the field of Defi, actually there are risks and benefits between them, so I think I would prefer trusting platforms to get less risk. Some of the big names in the defi space have made waves, but in terms of hype leading to many low quality products, even though I don't have much experience with them, I have staking some of them. The amount of crypto is indeed in addition to the benefits that I received, I remember accidentally being in the category of receiving airdrops.

[cute nmp]

Yield farming involves providing liquidity to DeFi protocols and earning rewards, while staking involves holding and locking up cryptocurrencies to secure a network and earn rewards. Yield farming carries higher risks due to the dynamic nature of DeFi, while staking is generally considered more stable. The choice between the two depends on factors such as risk tolerance and desired returns.

[Hypnosis00]

I've came across "yield farming" which looks quite similar to staking. You basically go on a "hunt" for "De-Fi" platforms which offer the best rates for your stablecoin (or token) holdings. This is done in a non-custodial manner through the use of smart contracts. On staking, I can basically "delegate" my coins to a validator and earn daily income.

What I want to know is if "yield farming" is better than staking. An overview of the advantages/disadvantages between the two would be nice. Any clarifications would be greatly appreciated. Thanks in advance.

Well, I'd never tried yield farming so can't say it was more profitable or not compared to staking. But then, I would say that I wasn't really a fan of doing this after having an unsatisfying experience with staking and this yield farming is just the same results (probably). Developers will try to create another term for staking just to divert the views and insights of those who have experienced this. And the only advantage that we get is earning a few bucks but the risk is too high.

[Bolivar_Tony]

Yield farming and staking are both popular methods to earn passive income in the crypto space. Yield farming involves actively seeking the best returns by moving funds across various DeFi platforms, while staking typically involves delegating coins to validators for more stable returns. The choice between the two depends on personal preference, risk tolerance, and willingness to actively manage investments.

[sheenshane]

My choice would be Staking which is a lower risk that yields farming.
As we can always see, the potential of high return would be also associated with a high risk and IMO, that's how yield farming does which is very risky not like staking the risk is how to entrust a platform to stake your coin in a long period of time.  Because the duration of the lock-up period and the potential rewards can vary depending on the specific blockchain network and its staking mechanism.

But if you're going to ask me personally, I'll not choose any of them.

[Rampagoe004]

I used to do yield farming and staking. Both are good things in my opinion. But I prefer staking because I am a long term investor. But I've also made very good APY from Yield farming. And Yield farming is also more flexible than staking because you are free to determine when you will take your assets back.

[Husires]

Staking involves locking your coins in a validator node that secures a proof-of-stake network, but also requires you to follow the network rules, stake for a minimum period, and accept lower returns. The best option depends on your risk appetite, time horizon, and coin preference.

Not necessarily, in the Cardano cryptocurrency all you had to do was not to spend from your wallet address where you have full access to your coin and you can at any moment send coins from your wallet, so if crypto is based on true proof of stake, you may not need to lock your coins while you need it in Yield farming.
In short, staking provides more dynamic and security for your currencies than yield farming.

[Jocuserious]

For new coin i wont believe anything else even just buy and sold. If you asked me for old altcoins then i can said that both are good profits for holders. Personally staking system was good at least lot of people involved of this items. Still now i have been participate 3-4 project which is comfortable for profits.

[Abiky]

In my opinion, staking is more reliable when it comes to staking known coins. Yield farming is often accompanied by earning new tokens by delegating your valuable tokens, such as ETH. Whether those new tokens that are given to you as rewards will have any value is a big question, plus those tokens are often hard to sell due to lack of liquidity or they have high slippage. I would choose staking.

Staking is always better. But you could lose your investment overnight due to volatile market prices. It's like Yield Farming where you "lend" stablecoins to a "De-Fi" protocol. These coins usually maintain their 1:1 peg to the USD, so there's a minimal chance you'll lose it all in an instant.

Nothing is perfect, so I'd just do both of them (yield farming and staking) to keep the passive income flowing. This is still better than saving money at a bank. As long as decentralization is preserved, people will be able to earn from either staking or yield farming without restrictions. Who knows if "De-Fi" will replace "Ce-Fi" in the future?

[bettercrypto]

I've came across "yield farming" which looks quite similar to staking. You basically go on a "hunt" for "De-Fi" platforms which offer the best rates for your stablecoin (or token) holdings. This is done in a non-custodial manner through the use of smart contracts. On staking, I can basically "delegate" my coins to a validator and earn daily income.

What I want to know is if "yield farming" is better than staking. An overview of the advantages/disadvantages between the two would be nice. Any clarifications would be greatly appreciated. Thanks in advance.

Even I thought at first that yield farming and staking were the same thing, but I misunderstood. I found yield farming to be better than staking based on what I saw and observed here.

And did you know that yield farming is higher in terms of when it comes to flexibility, providing opportunity and potential return, yield farming is the only one here that through biswap which I tried several times 4 years ago if I am not mistaken.

[mdzahed134]

Staking and Yield Farming both have a bit similarity i think. Though i have experienced in both of these, some advantages and disadvantages here, as like staking it’s duration will be 30 days and 90 days, your coins will be locked but i would like to recommend staking over farming. If you will stake top coins those are looks stable coins i think you will get good return.

[crwth]

From what I understand, Yield Farming is for those that involves liquidity pools being used to maintain liquidity of a certain coin or the DeFi ecosystem and then reward with newly minted tokens. For staking, it invovles locking up your asset to support the network by security and validating transactions then be rewarded. The bottomline here is that you could earn passive income in both, you just need to choose one.