These days the discussion about produce farming has made many investors question the attractiveness of farming tokens.
Yield farming is adding more tokens to a pool of two or more coins to make some profit.
Cultivation of the produce has been around for a few years, but many people shy away from involving themselves in pulling the rug and causing temporary damage.
Yield farming is only as good as the liquidity protocol and the tokens cultivated. Liquidity protocols provide liquidity to decentralized exchanges, aiding in the financing of orders.
An unsecured liquidity protocol would put users’ investments at risk. If it’s unprofitable, investors will look the other way.
However, farming tokens are becoming more profitable these days thanks to DeFi platforms like Ubeswap and tokens like SOURCE.
SOURCE is the native token of ReSource Finance, a DeFi project running on the Celo blockchain that enables business owners to access non-collateralized loans using a system called mutual credit.
In a recent report published by UncleCello, the coin is among the top five pairs with the highest APY. The rewarding nature of cultivating this token is more than one reason why investors should invest in the token.
Why Farming Source is Beneficial
Interest-free credit lines that do not require collateral from the borrower are a new and disruptive concept that will likely attract a lot of attention in the coming month when the resource hits the mainnet. SOURCE, the project’s utility token, is required to access these credit lines and is also used to underwrite them. This means that the anticipated demand for interest-free credit will probably translate into source demand.
How to Farm the Source on Ubeswap
Farming Source starts with buying tokens first. If you have a token traded on Ubeswap (like CELO or mcUSD), you can go straight ahead and buy SOURCE directly.
If not, you must first purchase the CELO on an exchange that accepts your preferred payment method (eg credit card). It’s simple and goes like this:
- Create an account with Coinbase or Binance. Once you are signed in, click on buy Sell choose more cello and amount to buy.
- Download the MetaMask extension for Chrome or Firefox on your computer and set up the wallet. Then connect it to the CELO blockchain.
- Click on “the wages” Select More in the upper left cornerSend.” Click on “cello” Enter the amount you want to send to your wallet. Copy your account address from MetaMask (starting with 0x on the top screen) and paste it into the “To” field on Coinbase.
- Verify the details and select “Select”Send,
- CELO tokens will be credited to your MetaMask wallet. At this point, you should swap it for SOURCE.
- Go to Ubeswap, Click on “”Connect to a wallet,” And choose Metamask. go to Exchange page, select cello Fill in the amount in the first dropdown, and in the blank space next to it. repeat the same for Source in the second dropdown. Swap and confirm the transaction.
- Since you are adding to a pool that includes both SOURCE and mcUSD, you will need to follow the same procedure to buy and swap mcUSD.
- Once you’ve confirmed that both SOURCE and mcUSD are in your Ubeswap wallet, it’s time to do the real thing – farm the tokens. Don’t be upset. The process is as easy as ABC.
- go for”pool” on Ubeswap and click on “add liquidity. , Select SOURCE in the first blank field and mcUSD in the second input field.
- Farm.
As stated before, the farming part is simple. Once you’ve farmed the tokens, you’ll automatically get your profits with your rewards when they become payable.
Farming is lucrative, and investors are jumping at the opportunity to maximize their capital income. Given the potential in the enterprise, it is only a matter of time before produce farming takes over the world of DeFi.