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​Staking and farming


Many people confuse these terms in the blockchain.


There are really a lot of things like this:

⁃ in both cases you direct your assets to some resource

⁃ in both cases you receive income on your assets


At the top level, the difference can be described as:


A) Staking - you stake 1 coin, per 1 resource and receive income in the same coin


Example: take a MINA coin, stake it to a p2p or everstake validator, and get a reward in the form of the same MINA coins



B) Farming - you supply any number of any coins (including stable tokens) to many different sites and receive income in the form of commissions from this site + farming bonus tokens of the site itself


Example: send USDC coin via Instadapp resource to Aave protocol. Receive commissions for deposits in USDC. On top of that, you get INST farming bonus tokens (from the Instadapp platform) and AAVE tokens.

In total, you receive USDC+INST+AAVE tokens on your deposit in USDC


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