Ivan on Tech Academy provides latest insights and reports about the blockchain industry.
The decentralized finance (DeFi) sector continues to both evolve and amaze and yet another platform worth looking into is that of TokenSets. TokenSets is an asset management platform that automates crypto trading strategies. It provides an interface to create and buy Strategy Enabled Tokens (Set tokens). And each Set token holds a basket of cryptocurrencies whilst also representing a trading strategy.
The TokenSets team set out to create a smart contract system that could time the market for better trade position entries and exits. So, TokenSets helps traders purchase an asset that does the management for them. Moreover, it is non-custodial like other DeFi protocols. Additionally, it is also based on the assumption that the average retail traders do have the time nor the technical know-how to develop and implement these strategies themselves.
Are you getting interested in the DeFi field? After all, it is one of the hottest developments in the crypto and blockchain field...
Those looking into the DeFi field will likely come across the term "yield farming". Yield Farming is the process of putting crypto tokens to productive use in a decentralized finance (DeFi) market to earn interest. Yield Farming takes place on the Ethereum blockchain, and yes, it is a way to earn passive income on Ethereum. But “hodling” ETH tokens is not the same thing as Yield Farming.
This kind of farming is a creative process. It is also a managed process where “farmers” typically hop from one protocol to the next to maximize returns. However, farmers can also employ “set it and forget it” strategies.
Yield Farming became popular with the release of Compound’s COMP governance token. When word got out that farmers could reap Annual Percentage Yields (APY) over 100%, things took off. At present, there is over $4.5 billion Total Value Locked (TVL) in DeFi according to DeFi Pulse.
Governance tokens like COMP offer hodlers...