Is Staking Safer From Yield Farming

Yield farming and staking may seem similar but they are different

They are alike because people need to lock up their tokens to earn rewards, but different because of their elements

Staking is easier to do compared to yield farming

The former is a seamless way of earning passive income, as all the user needs to do is add their tokens to a stake pool run by a node or validator

Yield farming is riskier than staking, as yield farmers have to think about security risks, potential rug pulls, and so on

If hackers find a loophole in the smart contract of the liquidity pool, they can drain the funds, making farmers lose their holdings in the pools

Yield farming can offer higher APY compared to staking. It can range from 1% to 1000% returns depending on the project.

Both are a good way of earning a passive income. However, we feel it depends on one’s experience and risk taking ability to decide which one would be the best for them.