Besides day trading, there are numerous other ways to earn crypto.
One of them is yield farming, which is a popular activity in the fast-growing decentralized finance (DeFi) industry.
It usually involves more risks than usual, yet yield farming allows DeFi users to maximize their gains while earning interest on their crypto holdings.
In this article, we will introduce you to yield farming as well as show how you can use this strategy to earn DGTX rewards on Uniswap.
Let’s dive in!
What Is Yield Farming?
Yield farming is a popular strategy in the DeFi space to earn some crypto on your digital asset holdings.
However, unlike lending stablecoins to others on a centralized platform, yield farming is considered a high-risk activity, as users often utilize multiple cryptocurrencies as well as complex processes and mechanisms throughout various platforms and protocols to maximize their earnings.
An example strategy includes depositing ETH via MakerDAO (Oasis) to open a vault and receive the stablecoin DAI.
After that, you utilize the lending protocol Compound Finance to lend the DAI to others. In exchange for providing liquidity, you receive cDAI tokens from Compound, representing the number of coins you have contributed to the pool.
As the next step, you move your cDAI to another platform to either stake your coins or lend them through other protocols. Alternatively, you could use your cDAI tokens to borrow funds against your digital assets to (re)invest those via other solutions.
As you can see in the example above, the average yield farming strategy is rather complex and involves higher risks than simply lending or staking coins on a single DeFi protocol. However, at the same time, yield farming often generates more potential rewards for users.
How to Earn DGTX Rewards With Yield Farming on Uniswap?
If you are looking to generate a passive income on your crypto, you can yield farm DGTX, the next-generation digital asset exchange Digitex’s native token, on the Uniswap DEX. Each month, five million DGTX is added into the pool rewards program.
At the time of writing this article, that’s valued at $65,000 in rewards each month, which is nearly 86.45% annual percentage yield (APY) by supplying liquidity for the DGTX/ETH trading pair on Uniswap.
On top of that, if you contribute your tokens for at least 30 days to Uniswap’s DGTX pool, your rewards are multiplied by three times to maximize your gains.
Sounds great, huh?
You can get started easily with yield farming DGTX in three simple steps:
- Deposit an equal amount of ETH and DGTX to Uniswap V2 to provide liquidity for the trading pair on the platform.
- In exchange for supplying liquidity, you will receive UNI-V2 tokens, which represent the tokens you have contributed to the pool.
- As the last step, deposit your UNI-V2 pool tokens to the Digitex Rewards platform to stake them and earn a passive income.
For more information about yield farming DGTX on Uniswap, we recommend checking out the following article on the Digitex blog.
Farm DGTX to Earn Rewards on Your Crypto
Once you get to grips with utilizing complex strategies and accept taking higher risks, yield farming is an excellent way to maximize your earnings and generate a passive income on your cryptocurrency holdings throughout multiple DeFi protocols.
For that reason, yield farming DGTX allows Digitex users to make some extra money on their coins while day trading crypto.
Are you ready to maximize your gains by farming DGTX on Uniswap?
In the meantime, if you haven’t already, we highly recommend creating an account at Digitex to enjoy a zero-fee cryptocurrency trading experience on both the spot and futures trading markets.