DeFi yield farming, explained
Cointelegraph
Published Sep 26, 2020 03:00AM ET
Updated Sep 26, 2020 04:40AM ET
Most DeFi applications are currently based on the Ethereum blockchain, creating some critical challenges for yield farmers. Ahead of the Ethereum 2.0 upgrade, the network is struggling with a lack of scalability. As yield farming becomes more popular, more transactions clog up the Ethereum network, leading to slow confirmation times and spiraling transaction fees.
This situation has led to some speculation that DeFi could end up self-cannibalizing. However, it seems more likely that Ethereum’s woes will ultimately work to the benefit of other platforms. For example, the Binance Smart Chain has emerged as an alternative option for the yield farmers that flocked to the network to take advantage of new DeFi DApps, such as BurgerSwap.
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Written By: Cointelegraph
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