BlockShots: Blockchain Simplified
BlockShots: Blockchain Simplified
Episode 74 - Staking vs. Yield Farming
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Episode 74 - Staking vs. Yield Farming

In this episode, we clarify what are Staking and Yield Farming, and how they are different from each other.

Staking — Generally related to Proof of Stake systems. The block rewards get distributed to the stakers. If the block producer don’t follow the rules, stakers risk losing the stake and the rewards.

Yield Farming — Generally related to DeFi. Users provide liquidity to pools and exchanges, and they get returns. These returns come from a share in the exchange fee, interest from loans, etc. 

In staking, you risk losing your stake if you or the block producer you are backing does something bad. In yield farming, there is no such risk. On the other hand, staking rewards are generated regularly while yield farming happens when users use liquidity pools.

Music: https://www.purple-planet.com

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BlockShots: Blockchain Simplified
BlockShots: Blockchain Simplified
Welcome to BlockShots, your guide to demystifying the world of blockchain in a clear and approachable way. Whether you're a crypto enthusiast or just starting out, our goal is to provide you with a solid foundation in blockchain technology. BlockShots is your trusted source for blockchain education in a down-to-earth, no-nonsense style. Tune in, learn, and navigate the world of blockchain with confidence.
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Appears in episode
Gautam Dhameja