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Staking vs Farming?
Farming is the process of accruing tokens in the form of a reward for providing liquidity to a project by placing a certain pair of tokens in a pool.
Funds will be stored in a liquidity pool in tokens of two currencies, which ensures the reliability of farming. If the rate of one coin suddenly drops to zero, then you will save part of the amount at the expense of the rate of the second currency. By storing tokens in two currencies, the risk for investors is reduced.
Providing liquidity is a subject to impermanent loss and it may carry certain risks. Make sure you are aware of all the pros and cons of providing liquidity before taking any actions. You can learn more about impermanent loss by clicking here.
For example, if one token falls by 50%, then you will lose only 25% — this is good insurance in case of a market collapse, which will not allow you to lose a large part of the deposit.
At the moment you can farm in 12 different pools on Nomiswap. These are several of them: ETH-BNB, BNB-USDT, BTC-USDT pools and other.
To do this, you need to connect your wallet to the Nomiswap and provide liquidity for both tokens: deposit equally into the pool of ETH and BNB. In return, you will receive an ETH-BNB LP token. This is the token of this pool.
If you invest in a pool with two stable-coins, then you practically deprive yourself of the risk of volatility and impermanent loss.
That is, if in the case of farming alt-coins your income may fall with a significant correction of currencies, then with stable-coins you receive income without these risks.
There are stable-coin pools on Nomiswap. These are pools of BUSD-USDT and USDC-USDT.
Staking replaces mining excluding energy costs. This is the process by which an investor deposits their tokens to the exchange for a reward in the form of new tokens. It is like a bank deposit where you invest one currency, keep it on the exchange and get a percentage of profitability for it.
If you own NMX token in your wallet, why not let it work for you? Let the assets not lie idle, but generate income, for this there is a launchpool.
You can stake your tokens and earn at an attractive annual percentage.
The difference between the concepts of "farming" and "staking" is that in staking we use only one currency, and we get it as a reward. That is, if we contributed NMX, then we get NMX as a reward.
When farming on Nomiswap, you invest two pool currencies and get NMX as a reward.
What is more interesting for you, decide for yourself and calculate your risks.
Watch out for fake accounts! The Nomiswap team will never text you first and ask for private keys or individual information!