When we talk about decentralized finance ("DeFi") yield farming, we are talking about one of the parts of DeFi. This is the form where the financing is based solely on the blockchain and does not rely on any other financial intermediaries. In the world of DeFi, different processes exist. Amongst them, there are Staking or Farming.
How does Yield Farming apply to M2E & How to get started?
Yield Farming is a process of investing your cryptocurrencies to earn more in the form of passive income. It basically consists of adding liquidity to a platform in which users will be rewarded with interest that materializes in the form of additional tokens.
Added to this, there is a notion of Move-To-Earn ("M2E") which could be summed up in one sentence, "A healthy body and a full wallet!" This new trend is an evolution from Play-To-Earn, which has been very successful since 2021. The new concept has gained increasing popularity thanks to STEPN on Launchpad Binance. However, it is mainly due to its simplicity that affects almost everyone: you receive rewards in the form of tokens for having a daily walking activity.
With a DeFi platform like StepFarm, we appreciate a place where sports enthusiasts, gaming nuts and crypto lovers meet. A universe where specialists of each genre like STEPN, Genopets, Dose, Movez, Menzy or beFITTER can enjoy together and have fun. Int the end, everyone runs after the same goal!
How to Farm $GMT and $GST?
To start a Yield Farming activity on a platform like StepFarm, you first need to have a connected wallet like MetaMask, where you hold assets in the form of tokens, such as $GMT or $GST. Next, you will choose the liquidity pool (“LP”) of the assets you want and enter the desired amount. It is important to know that the contribution of tokens is always done at equal value at the point in time. As an example, currently, 1 GMT is worth 14 GST. Therefore, if users have chosen to invest in GMT-GST LP, users will need 1GMT and 14 GST to enter into the liquidity pool. It is from this moment that the notion of “LP token” arrives. LP tokens is a fusion of the two tokens brought to the pool of liquidity. (More details to come in part 4)
The platform will indicate any fees as well as expected earnings. Once you have contributed to the liquidity pool, it is time to start generating your earnings from GFT farming and/or from GFT staking.
See you in the next article for more information on StepFarm Yield Farming for M2E tokens.
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