The world of decentralized finance (DeFi) has seen phenomenal growth in 2020 as people have become more interested and involved in the revolutionary advancements being made in the space. In particular, the rise of yield farming and automated market making (AMM) have been key drivers of this growth.
The news of the latest DeFi developments has become increasingly mainstream, with the movement being seen as a form of economic revolution. As a result, the sector has become a haven for traders and investors who are looking to take advantage of the opportunities afforded by the burgeoning sector.
Yield farming has been a major area of growth in the DeFi sector, providing users with the opportunity to make returns by supplying liquidity to protocols like Uniswap and Compound. AMM is a different type of DeFi protocol wherein users can trade digital assets without a middleman. This sort of protocol has become increasingly popular as it allows for more efficient, secure and automated trading.
The growth of DeFi has been compared to that of 2017-18 during the ICO boom. Though DeFi is still in its infancy, the potential for growth and development looks incredibly promising.
DeFi is undoubtedly a revolutionary space that has seen an incredible surge of interest in the last year. Yield farming and automated market making are two of the major areas pushing the movement forward. As trust in the traditional financial system decreases, decentralized options are becoming increasingly popular and provide a unique opportunity for savvy investors.
Yield farming has allowed users to make returns by supplying liquidity to protocols and AMM has allowed for more efficient, secure and automated trading. There’s no doubt that the sector is still in its infancy, but with continued growth and development, DeFi could be the way of the future.
It’s mesmerizing how far the DeFi space has come in this short amount of time. If you’re an avid investor or trader, you’re probably already familiar with the potential DeFi has to offer. Follow us for more updates and the latest news from the ever-evolving decentralized finance world.