Solana farming

Yield farming is one such investment strategy in DeFi. It involves lending or staking your cryptocurrency coins or tokens to get rewards in the form of transaction fees or interest . This is somewhat similar to earning interest from a bank account; you are technically lending money to the bank.

Types of yield farming: Lending: Coin or token holders can lend crypto to borrowers through a smart contract and earn yield from interest paid on the loan . Borrowing: Farmers can use one token as collateral and receive a loan of another. Users can then farm yield with the borrowed coins.

Solana uses proof-of-stake as well as a protocol known as proof-of-history. How many transactions can Solana do per second? Solana has a theoretical throughput of 65,000.