Coinmonks
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The Yield Farming Craze Showcasing the DeFi Money Lego Nature

Overview

Balancer Protocol played an important role in the YFI liquidity farming due to its automated market maker structure

Different types of CFMMs | TokenInsight
Different types of CFMMs, Source: TokenInsight
Yield farming strategy | TokenInsight
Yield farming strategy, Source: ChainLinkGod

Shared vs Private liquidity pools

Balancer Liquidity Pools | TokenInsight
Balancer Liquidity Pools, Source: Balancer, TokenInsight

1. Private liquidity pools

Private Liquidity Pools | TokenInsight
Private Liquidity Pools, Source: Balancer, TokenInsight

2. Shared liquidity pools

Shared liquidity pools | TokenInsight
Shared liquidity pools, Source: Balancer, TokenInsight
Balancer’s liquidity pools stats | TokenInsight
Balancer’s liquidity pools stats, Source: Balancer, TokenInsight

The YFI yield farming craze encouraged a substantial increase of the trading volume, No. of traders and liquidity providers in the Balancer ecosystem

Comparison of shared liquidity pools with and without YFI token | TokenInsight
Comparison of shared liquidity pools with and without YFI token, Source: Balancer, TokenInsight
Daily trading volume, unique traders and liquidity providers | TokenInsight
Daily trading volume, unique traders and liquidity providers, Source: Dune Analytics, TokenInsight

Final Thoughts

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