Yield farming on Ubeswap: Profit from farming SOURCE tokens

The excitement around yield farming these days has led several investors to question the lucrativeness of farming tokens.

Yield farming involves adding more tokens to a pool of two or more coins to generate profits.

Yield farming has been around for a few years, but many are reluctant to engage in it because of the blanket pull and inconsistent losses.

Yield farming is only as good as the liquidity protocols and the tokens farmed. Liquidity protocols provide liquidity to decentralized exchanges and help fund orders.

An insecure liquidity protocol puts users’ investments at risk. If it’s unprofitable, investors will look the other way.

However, farming tokens are becoming more and more profitable these days thanks to DeFi platforms like Ubeswap and tokens like SOURCE.

SOURCE is the native token of ReSource Finance, a DeFi project running on the Celo blockchain that allows business owners to access unsecured credit through a system called Mutual Credit.

In a recent report published by UncleCelo, the token is among the top five pairs with the highest APY. The rewarding nature of farming this token is more than one reason why investors should invest in the token.

Why farming SOURCE is worthwhile

Interest-free lines of credit that require no collateral from the borrower is a novel and disruptive concept that is likely to generate plenty of traction in the coming month when ReSource hits mainnet. SOURCE, the project’s utility token, is required to access these lines of credit and is also used to draw them. This means that expected demand for interest-free loans is likely to translate into demand for SOURCE.

How to farm SOURCE on Ubeswap

Farming SOURCE starts with purchasing the token. If you own a token traded on Ubeswap (like CELO or mcUSD) you can simply buy SOURCE directly.

If not, you must first buy CELO on an exchange that accepts your preferred payment method (e.g. credit card). It’s easy and goes like this:

1. Create an account on Coinbase or Binance. After logging in, click Buy Sell and select FOREHEAD and the amount to buy.

1. Download the Metamask extension for Chrome or Firefox on your computer and set up the wallet. Then connect it to the CELO blockchain.
2. Click on “Counting” in the upper left corner and select “Send.” Click on “FOREHEAD” Enter the amount you want to send to your wallet. Copy your account address from Metamask (which starts with 0x on the top screen) and paste it into the “to” field on Coinbase.
3. Check the details and select “Send.”

1. CELO tokens are deposited in your Metamask wallet. At this point, you should swap it out for SOURCE.

1. Go to Ubeswap, click “Connect to a wallet” and choose Metamask. Go to exchange page, select FOREHEAD in the first drop-down list and enter the amount in the empty field next to it. Repeat the same for SOURCE in the second drop-down list. Exchange and confirm transactions.

1. Since you are adding to a pool that contains both SOURCE and mcUSD, you must follow the same process to buy and switch mcUSD.

1. Once you’ve confirmed that both SOURCE and mcUSD are in your Ubeswap wallet, it’s now time to do the real thing – farm the tokens. Don’t be alarmed. This process is as simple as ABC.

1. Go to “Swimming pool” on Ubeswap and click “Add liquidity.” Select SOURCE in the first blank space and mcUSD in the other input space.

1. Farm yard.

As already mentioned, the farming part is easy. Once you have farmed the tokens, you will automatically receive your winnings along with your rewards when due.

Farming is lucrative and investors are taking the opportunity to maximize their returns on capital. Given the company’s potential, it’s only a matter of time before yield farming takes over the DeFi world.

Was this letter helpful?

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers