💸Passive Income
On Liquid Collectibles, you can make your money work.
Staking
It is a way of growing your holdings without having to sell them. Staking can be compared to putting your funds in a savings account. Still, instead of lending it to others and sharing the interest with you, when staking your crypto, you lock it into a smart contract that compensates you by giving you rewards in return. Said rewards can be provided in the same cryptocurrency you staked or another currency; it depends on your chosen pool; on Liquid Collectibles, you can earn $LICO tokens or NFTi.
Learn how to stake on Liquid Collectibles with this tutorial or by watching this short video.
Sources: https://academy.binance.com/en/articles/what-is-staking
Yield farming
Also known as ‘liquidity mining’ or ‘liquidity harvesting,’ it is a way of getting rewards by holding (locking) cryptocurrencies.
Usually, users (called ‘liquidity providers’) add their ‘idle’ funds that would have otherwise been wasted away in exchanges or wallets to liquidity pools –which are smart contracts that contain funds. In return, the users get rewards from fees generated by the platform or another source.
On Liquid Collectibles, yield farms are used to incentivize users to provide liquidity to the protocol and the different NFT collections.
Liquidity is needed for any asset to be traded, and the more liquidity an asset has, the less volatile and more stable it is.
Pros and cons
Pros
Making your money work for you.
Higher profits than almost any other investment option.
Cons
Exposed to price volatility of the underlying assets.
Yield farming is one of the hottest trends in DeFi (decentralized finances), and it’s one of the benefits the Liquid Collectibles platform offers its users.
For a more in deep understanding, you can read this complete article.
If you want to learn how to yield farm on Liquid Collectibles, check out this tutorial or if you are more of a visual learner, watch this brief video.
Sources:
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