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Anyone can earn yield by providing liquidity to Bitcoin.com’s multichain Verse DEX.
DEX Check the rewards,
measured in APY, you can get right now on Verse DEX pools here
here. Use Verse Farms to earn additional
rewards on top of those you earn by providing liquidity
Table of Contents
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Deep liquidity is one of the most important attributes for any financial market because it enables fast and
efficient financial transactions. For a thorough introduction to liquidity, read this article. Yield farming is a
good strategy to increase liquidity. New projects can jump start their liquidity and established projects
with decreasing liquidity can reverse the trend by offering generous incentives.
Staking: There are several kinds of staking in crypto. The first kind happens at the protocol level of a
Proof-of-Stake blockchain. People lend some amount of the blockchain’s native cryptoasset (ETH on the
Ethereum blockchain, AVAX on the Avalanche blockchain, etc…) to the network in order to secure it. In
exchange for this vital service, they receive a percentage of the blockchain’s new token issuance.
The second kind of staking is usually a limited time opportunity to earn extra yield for being a liquidity
provider (LP). When you provide liquidity on a DEX, you are given an LP token, a kind of receipt used to
collect earned fees and to redeem the cryptoassets in a pool. Some projects allow people to “stake" LP
tokens by depositing them into a staking smart contract.
contract This allows LPs to earn yield twice, first for
providing liquidity in a pool and second for staking LP tokens on the DEX. DEX’s do this kind of staking to
attract liquidity.
For example, Verse Farms offers non-custodial yield farming. Deposit select liquidity pool tokens into
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Verse Farms and earn additional rewards on top of the trading fees earned by providing liquidity.
Lending: DeFi allows people to borrow cryptoassets from a pool of lenders. The lenders receive yield from
the interest borrowers pay. If you are new to the idea of lending or borrowing, please read the following
article: What is crypto lending?
There are several risks to yield farming. The most common risks are from DApp developers, smart
contracts, and market volatility. DApp developers might steal deposited assets or squander them. Smart
contracts could have flaws or exploits that lock or allow funds to be stolen. Market volatility can cause
something called impermanent loss, which largely affects DEX liquidity pools.
The best way to mitigate yield farming risks is to research projects before you deposit anything, and to
stick with projects that have a long track record.
Buy now
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What is Ethereum?
Understand Ethereum's key characteristics.
What is Verse?
Learn about Bitcoin.com’s official token, ways to earn it, and how to use it in
the Bitcoin.com ecosystem and beyond.
What is Avalanche?
Understand Avalanche's key characteristics.
What is Polygon?
Discover Polygon's (MATIC) key characteristics.
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What is a DEX?
A decentralized exchange (DEX) is a type of exchange that specializes in peer-
to-peer transactions of cryptocurrencies and digital assets. Unlike centralized
exchanges (CEXs), DEXs do not require a trusted third party, or intermediary,
to facilitate the exchange of cryptoassets.
Dollar-cost averaging
Learn how to protect yourself from big losses with this simple but powerful
investment strategy.
What is APY?
APY stands for annual percentage yield. It is a way to calculate interest earned
on an investment that includes the effects of compound interest.
What is liquidity?
Liquidity has several slightly different but interrelated meanings. For the
purposes of crypto, liquidity most often refers to financial liquidity and market
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liquidity.
Sign up
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