Why Zapping is One of the Best and Most Beneficial Yield Farming Methods
The spread of decentralized finance (DeFi) has seen the birth of various approaches users can explore to invest and earn a passive income within the DeFi space.
Yield farming, like staking, is one of the proven methods users employ to earn sustainable income with DeFi. It is pretty effective and offers lucrative interest rates compared to other strategies.
Despite that, many users, especially newcomers, tend to opt for other strategies because of the complexities, asset demand, transaction costs, bugs, etc., associated with yield farming.
However, with the zapping method of yield farming, exploring the lucrative income opportunities the strategy offers is easy and very time-saving. In this short piece, you’ll learn about Yield Farming by Zapping and where you can get started right away.
Essentially, yield farming is the process of depositing digital assets in a liquidity pool through decentralized finance protocols (DeFi Protocols), and is used for borrowing, selling, lending, etc., while earning rewards passively.
The process usually requires a pair of tokens (e.g., USDT-USDC or BTC-ETH) to be exchanged for LP tokens by adding liquidity to a pool on a decentralized exchange (DEX) before farming. This process tends to be cumbersome and often involves high gas fees to acquire LP tokens.
With the zapping method, however, investors no longer need a pair of tokens to exchange for LP tokens when farming. In essence, zapping is the process of yield farming with a single token such as USDC, USDT, or $GOGO, etc., instead of a pair of tokens exchanged for LP tokens. The strategy allows your single token to be converted to LP tokens for farming right away.
So, what are the benefits the zapping method brings to the DeFi space, and why should you consider using it? Let’s examine that briefly.
Less Token Requirements
The first and foremost advantage the yield farming by zapping strategy offers investors is the single token requirement. As mentioned earlier, with the zapping method, farmers will not need multiple tokens or pairs of tokens to exchange for LP tokens before farming.
This alone eliminates the difficulties and risks of exchanging token pairs for LP tokens.
Lesser Transaction Fees
On most DeFi protocols, especially those built on the Ethereum chain, users are charged expensive gas fees to execute smart contracts and even simple on-chain transactions. While this alone already costs investors excessive transaction fees, acquiring LP tokens with a pair of tokens by providing liquidity to a pool on a decentralized exchange (DEX) means more smart contracts and more excessive gas fees.
These exorbitant transaction costs resulting from multiple smart contracts, sometimes leave farmers with diminished rewards. Since the zapping strategy involves farming with a single token rather than acquiring LP tokens on a DEX, smart contracts are reduced. Therefore, a very small amount of gas fee is needed to farm.
Less Time Consuming
Exchanging a pair of tokens for LP tokens on a decentralized exchange platform (DEX platform) not only demands exorbitant gas fees but also consumes time, especially on platforms with heavy and complex UI/UX designs. The process could become even more time-consuming for new investors with little to no crypto knowledge.
Zapping, on the other hand, saves time since it readily converts single tokens to LP tokens for farming straight up. It’s very straightforward and can be executed in seconds.
Having shed light on zapping and the huge advantages it brings to the DeFi space, the question now is, “Where can one access this awesome yield farming strategy?”
The GOGO Protocol, which is by far one of the swiftest and most user-friendly DeFi Platform out there, offer new and avid yield farmers this awesome strategy to quickly and easily farm their digital assets in return for sustainable and double-digit APYs.
In addition to its alluring advantages, the yield farming by zapping section located on the Pools tab of the GOGOcoin App also features a cutting-edge drag-and-drop function, which further simplifies the farming process and enhances user experience.
Farming on the GOGO Protocol requires the use of either USDC or GOGO coin. Generally, transactions executed on this platform are almost costless. Therefore, since the zapping strategy eliminates the need for multiple transactions, very little amount of $MATIC in your crypto wallet is all you need to get farming.
The process is pretty easy with the lightweight and advanced user interface design coupled with the yield farming by zapping method. This step-by-step guide will walk you through it.
Yield farming is one of the strategies for earning lucrative passive income with DeFi. The strategy, though lucrative, can be complex, costly, and time-demanding, as it often requires acquiring LP tokens with a pair of tokens by providing liquidity to a pool on a decentralized exchange (DEX). This means more smart contract execution and, therefore, higher gas fees. The zapping method of yield farming eliminates the process of acquiring LP tokens with a pair of tokens by allowing investors to directly convert a single token into LP tokens ready for farming.
The GOGO Protocol offers every yield farmer this cutting-edge strategy to make yield farming simple, straightforward, cost-effective, less risky, time-saving, and fun. With GOGOcoin zapping, you can now easily convert a single token to LP tokens, ready to farm for real yield.
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