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Glossary
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- Yield FarmingThe Yield Farming allows crypto enthusiasts to earn rewards just by putting their assets to work in lending or staking within the decentralized finance (DeFi) sector. Rather than keeping the tokens in a non-paying wallet, the users borrow them into the liquidity pools that support the Decentralized Exchanges, Lending Apps, or other Blockchain Protocols. As a result, they get a proportion of the platform's transaction fees or new tokens that are being issued as rewards. This whole yield farming scenario is somewhat like opening an interest-earning account in a conventional bank, though with potential returns and risks that are much higher. Besides, the farmers have the option of shifting their money around various platforms to secure the highest returns: this is called yield optimization. The yield rewards are usually given out in the form of more tokens that are subject to market conditions and might rise or fall in value. To sum it up, yield farming is a profitable venture, but at the same time, the risks involved such as smart contract bugs, token price volatility, or sudden platform failures must be considered. These hurdles notwithstanding, yield farming continues to be one of the most sought-after DeFi activities and thus helps drive liquidity and adoption in Blockchain ecosystems. To put it simply, it is the way an investor "makes their crypto work", through earning a passive income while at the same time assisting decentralized platforms to operate seamlessly.
- YTDYear-to-Date (YTD) is a financial term that describes the time span from the first day of the current year, from January 1 up to today. It is widely used in finance, investing, and accounting to indicate the performance or growth of the company, thus being the ongoing year. So, for instance, if a company is mentioned that its sales revenue is “up 12% year-to-date”, literally it is said that this year the company, so far, has earned 12% more than the same period last year. Likewise, YTD is also used by the investors, to assess how much a stock, cryptocurrency, or portfolio has gained or lost from the beginning of the year. The YTD number enables one person to spot the short-term trend without having to wait for the end of the year. The YTD number makes it possible to see a snapshot of the progress over time and convenient for making comparisons with a year before or with a competitor. YTD is commonly used not only in finance but also in profits, sales, etc. Thus, it is a simple method to monitor the current year performance so far. January 1 each year marks the resetting of the period, allowing for a new beginning of tracking one’s progress in a business, finance, or investment performance throughout the year.