The terms staking, liquidity mining, and yield farming are often (unknowingly) confused or misused.Whilst each of these terms implies that a user earns compensation by making their assets available for a limited time in order to support an economic function, the underlying nature of these terms differ.\u201cStaking\u201d in particular generates many questions because it is used in various reward model types which no longer correspond to the historical definition in Crypto.The commonalities of staking, liquidity mining, and yield farming are obvious, users are financially rewarded for supporting something.The first thing that semantically distinguishes between these terms is the entities that actually pay out the reward.A Staking Reward Program may pay out rewards to users for providing liquidity to DEX pools above and beyond the rewards already paid by a DEX. The entity here would be a company looking to hedge its existence.In the case of lending, the initiator of reward payments is not a DEX or a crypto company like DePay, but a DeFi lending protocol.The second factor that makes these terms non-interchangeable is the motivation of the entity for paying out the rewards\/earnings. You are generating value to the reward payer in each case, which is something that you should be aware of. This can be, for example, network security that you increase for a protocol, ensuring the base of its business model (liquidity provision by users), or providing missing capital for a startup with its own reward model.Therefore, before you provide DEPAY\/ETH liquidity and earn passive income in the form of rewards, we would like to clarify important terms so that you better understand what exactly you are being rewarded for.Yield farming is a generic term. It describes the act of making your own liquidity available for a certain period of time (\u201clocking\u201d) and earning a variable reward\u2026<\/p>","protected":false},"excerpt":{"rendered":"
The terms staking, liquidity mining, and yield farming are often (unknowingly) confused or misused.Whilst each of these terms implies that a user earns compensation by making [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/posts\/4935"}],"collection":[{"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/comments?post=4935"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/posts\/4935\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/es\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/media?parent=4935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/categories?post=4935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/es\/wp-json\/wp\/v2\/tags?post=4935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}