What is Deflationary Farming | How Deflationary Yield Farming Works
Yield farming has an inherently bad characteristic. You are putting down capital to earn something that you and all the others like you intend to sell. This means there is likely to be higher demand in the short run and sell-offs as time progresses. This destroys the value of the underlying token, do to inflating the supply.
There is a solution to this madness! and its called Deflationary Farming. For deflationary farming, there must be 1. a fee charged on token transfers, and 2. users can earn fees when they farm. This allows those who farm to do so without infinite inflation.
By having a fixed supply that cannot be added to and having unstakeable farms, yield farms cVault.Finance has created the first deflationary yield farming farms in the defi space.
The rewards given to farmers in cVault.Finance are paid out in Core tokens. The core tokens used for rewards are made available by cVault Finance ferm buying them from Uniswap and given to the farmers.
List of Deflationary Farms / Tokens
- Core Token - Learn more about Core token here