Yield Farming Parties
Yield farming with pooled funds can be more rewarding than farming on your own. Yield farming protocols incentivize liquidity providers (opens in a new tab) (LP) to stake their cryptocurrency in a smartcontract (opens in a new tab) -based liquidity pool. This is usually done with paired assets. These rewards can be a percentage of transaction fees, interest from lenders or a governance token. These returns are expressed as an annual percentage yield (APY). As more investors add funds to the related liquidity pool, the value of the issued returns rise in value.
Many liquidity related pools take into account factors such as time and amount staked. For example, a wallet can make exponentially more rewards if they provid more LP for the respective farm. Thus, it is more beneficial to for individuals with small amounts of capital to invest, to pool their fudns to become a single larger entity than a sole individual lending on their own. PartyFinance provides a mutually beneficial relationship to these farming platforms since larger amounts of liquidity will be provided. Furthermore in the future, parties could be formed to allow partygoers to pool their exposure to a variety of new projects that offer randomised mints. These syndications will be available in the future as more platform features beceom available.
In the future we expect new projects will approach yield farming parties in order to launch on DEXs and similar platforms. This is the a core advantage of PartyFinance, third parties recruiting parties to assist one another in cryptocurrency adoption.