Yield farming and Liquidity Mining, are gaining traction more and more every day. It’s all part of decentralized finance (DEFI) where you stake some capital and look to gain returns by providing liquidity to certain protocols. The protocols are pegged on traditional tokens, and investors play the waiting game as they seek to profit from high risks incurred.
It certainly is a growing area of study and attention among both traders and crypto HODLERS. Two types of traders are looking in at the moment; the seasoned trader who has knowledge in varying degrees, and the HODLER who is tired of just packing value into a static or sideways crypto asset. Both have the chance to have some excitement and experience escalations, only it’s not so fun when the volatility hits them in the wrong direction.
Changes in bZx
A few protocols have seen some great action recently with bZx showing out the most. A June 29th announcement saw the protocol add two new proposals to update the BZRX system and set up bang entry into the Yield farming space. If you were keen on BZRX tokens before this week, this new update will change the complexion of how you looked at it entirely. The stasis within the protocol ceased to exist because the tokens are no longer locked and non-transferrable.
The first update saw the tokens gain much more flow with holders now able to redeem tokens for a proportional piece of the insurance fund, when a borrower gets liquidated. The second update saw holders stand a chance to gain through protocol governance. The bZxDAO came into existence to allow BZRX holders who also patronize the DAO, get rewards through inflation and a part of protocol fees.
The changes with bZx represent just a fraction of the escalations that have gone on in the Defi scene. Over the last several weeks, the space has attracted attention by knocking the centralized token scene off its perch. This has been nothing short of decentralized system within a decentralized environment coup; a revolution within a revolution if you will. The messari graph below tells a story of the ascendancy of decentralized tokens, in split graph comparison with traditional centralized tokens.
DEX tokens become an immediate point of conversation here as you look at this graph. Spot volumes on DEX have gained 5X more than any of their centralized counterparts; which says a lot about the growth of the space.
DEX tokens indeed look like the next big thing in this decentralised economy.
