Category: 7. What is Yield Farming?

We’ve already highlighted the yield farming risks that come from crypto’s volatility and how that impacts the dynamic returns and the dangers of impermament loss. There is another dimension to safety that relates to being scammed or hacked. Given the huge popularity of yield farming and the willingness of so-called crypto degens to take in…

Yield farming crypto can be profitable, but it depends on how you measure the gains. Most crypto investors measure returns in fiat. Given that crypto is so volatile, you might make a decent return from Yield Farming measured in percentage return that is a loss in fiat terms. This can simply be because of changes…

People are attracted to DEFI because they want to grow their funds and naturally want to know the best yield farming cryptocurrencies and available strategies. These are the wrong questions to ask.  You need to start by thinking about how much risk you are prepared to take, how much research you are willing to do…

The individual yields available within DEFI are set automatically by protocols offering the particular service. Algorithms will decide, for example, the interest available on deposits or payable on loans based on supply and demand, which constantly changes. You simply have to connect with a protocol/application to earn yield, as described above. Yield Farming generally requires…

To yield farm, you need assets for which the common types of yield farming apply, the most popular being ERC20 coins. You also need a decentralised wallet to connect to the application, the most popular being browser wallets like Meta Mask or Trust Wallet. Earning interest on ETH A simple Yield Farming strategy would be…

Though Yield farming includes a broad range of opportunities to generate a return actively, it shouldn’t be confused with staking, which generates a return from helping blockchains process transactions. There is a range of ways blockchains validate transactions, known as Consensus Mechanisms. Bitcoin and Ethereum use Proof of Work, while many blockchains that emerged since…

What you’ll learn: Yield Farming describes the range of opportunities within DEFI (decentralised finance) to generate a return on your cryptocurrency rather than leave it sitting in a wallet. DEFI is an umbrella term for a new breed of permissionless financial services built on blockchains like Ethereum and Solana. The cryptocurrency ecosystem consists of thousands…