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 you to have crypto in the first place, though there are options that allow you to deposit fiat money (like USD), minting an equivalent Stablecoin (like USDC) and earn a yield on those funds.
So in its simplest form, yield farming is passive; once you’ve been through the initial steps and signed a transaction, the interest is earned in the background without you having to do anything.
Yield aggregators take this one step further by automatically applying complex strategies for you. Those advantages will, however, be eroded as more users take advantage.
The most experienced Yield Farmers will proactively seek out the optimal yield farming steps themselves, recursively moving funds between various protocols and calculating the net return minus the GAS fees, impermanent loss and slippage.
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