BREAKDOWN: A Simple Explanation of DeFi and Yield Farming Using Actual Human Words

A primer on yield farming, liquidity mining, automated market making and all the other terms shaping the brave new world of decentralized finance.
This episode is sponsored by Bitstamp and Crypto.com.
Today on the Brief:

US Gov’t forces China’s Houston consulate to close

US previously-owned housing market grows 20.7% May to June

Insider stock selling reaches record levels

Our main discussion: DeFi 101
Today’s episode of The Breakdown is a primer for anyone who has lost track of the terminology surrounding decentralized finance. In it, NLW goes over:

DeFi’s background and origins

Market making in a traditional context

Automated market making 

How liquidity mining incentives economic participation 

How decentralized exchanges differ from centralized exchanges 

What “yield farming” actually means

Why we shouldn’t be concerned about the Yield Farming bubble

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