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BTC $45066.42 (-6.4%)
ETH $3143.77 (-8.6%)
USDT $0.99 (0.14%)
BCH $573.79 (-9.9%)
BSV $154.00 (-3.1%)
LTC $165.68 (-8.4%)
BNB $385.40 (-6.2%)
ADA $2.14 (-10.%)
DOGE $0.21 (-8.8%)

Chinese Crypto Community Leave Crypto Exchanges for DeFi Yield Farming

Chinese Crypto Community Leave Crypto Exchanges for DeFi Yield Farming

Crypto investors have been reported to be abandoning Chinese crypto exchanges en masse to join the (decentralized finance DeFi) yield farming craze.

On September 6, Chinese blockchain and crypto reporter Colin Wu said that the Chinese crypto community is launching a “coin withdrawal campaign”, wherein they are liquidating their assets from crypto exchanges in the country, only to deposit them in decentralized exchanges (DEX).

He added that this was primarily due to the so-called “yield farming”, an activity wherein cryptocurrency users would lend their crypto funds to others through smart contracts. This takes form in lending platforms popular to the DeFi space.

As to how these yield farmers make their way around the system to earn more money, less information is available. This is because the farmers want to keep their methods to themselves, for fear that if others get wind about it, they too will join the craze and make the competition tougher and the activity less profitable.

Wu backed his statements with data from CryptoQuant, a data platform for cryptocurrency traders. He noted that in the wake of ETH’s sharp drop, investors have been buying the dips from exchanges and transferring them to DEXs.

As a response to the ongoing craze, he observed that crypto exchanges have begun to list DeFi coins like “crazy” to entice users to gamble in the secondary market and assist users with their yield farming activities.

Read Alos: DeFi Coins Market Trend 2020

Collins Adane is a writer who follows the crypto industry closely. He loves fish stew and Real Madrid. He believes in cryptocurrency’s potential to transform the money landscape in his native country Ghana.