What is defi mining (is there a risk of defi mining)
What is defi mining and what is defi mining? What is defi mining
What is the defi mining
decentralized blockchain protocol, such as Ethereum, EOS, etc., all realize disintermediation through its consensus mechanism. Users can use smart contracts to borrow and mortgage on the chain, while also depositing assets into smart contracts to earn profits. The mining mode of DeFi is different from Cryptocurrency in traditional finance, because they do not support centralized entities to participate in any system, so there are also certain risks. For example, when you want to borrow a token with Bitcoin or Litecoin, you must provide liquidity to the trading house before participating
DeFi mining is currently the most popular type of mining for encrypted assets. Its essence is to help users gain profits from various complex digital worlds, and make their investment simple and fast through automatic Market maker (AMM). However, due to the fact that most people do not have sufficient demand for these trading platforms and cannot guarantee the long-term sustainability of their investments, it will lead to losses, resulting in losses So how can we solve this problem 1. Establish an open network 2. Build scalable infrastructure 3. Build a platform that does not require permission
Is there any risk in defi mining
Recently, PeckShield, a blockchain security company, released a piece of information on “how to make profits from defi mining” on its official account. This information shows that ‘income cultivation+hedging’ is an investment form, and investors need to pay attention to risk control According to PeckShield’s data, the top ten projects in the current lockdown fund scale are: Compound, MakerDAO (MKR), AaveV2, Yearn. finance (YFI), and Synthetix (SNX). Among them, COMP’s lockdown amount reached 1.47 billion US dollars. The market price of SNX is 8.68 US dollars, with a 24-hour increase of over 50%; Other project tokens such as AAVE, CRV, LEND, etc. all exhibit high investment attributes.
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