Yield Farming

Explore DeFi yield farming for investors

Let's take a look at yield farming?

Yield farming is the process of using decentralized finance (DeFi) to maximize returns. Users lend or borrow crypto on a DeFi platform and earn cryptocurrency in return for their services. Yield farming investors who want to increase their yield output can employ more complex tactics. Another term for yield farming is 'liquidity mining', which is the provision of liquidity for DeFi transactions, in return for high yields.

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Benefits of investing in yield farming

Benefits of investing in yield farming

High returns

Yield farming Ethereum-based credit markets are offering new strategies for crypto owners to earn incredibly attractive returns on their cryptocurrency, at least a hundred times higher than a traditional bank would offer. Yield farming also offers higher profits than almost any other traditional investment channel, from real estate to stocks and bonds.

Mining rewards

Yield farming investors can also turbo-charge their returns with liquidity mining. They receive tokens from the company borrowing their funds, in addition to the high interest on their loan.

Controlled risk

Unlike traditional financial services, yield farming integrates smart contracts to manage and mitigate risks related to financial services, using the immutability of the blockchain and proof protocols.

Better than savings

Instead of just having your cryptocurrency stored in a wallet, you can effectively earn more crypto by yield farming. Yield farming investors can earn from transaction fees, token rewards, interest, and price appreciation. Yield farming is also an inexpensive alternative to mining — since you don’t have to purchase expensive mining equipment or pay for electricity.

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Build your own portfolio of assets

AUTOMATED INVESTING

With an auto-invest account, you can increase your wallet balance and rebalance your portfolio of cryptoassets in the event of a bull run, to maximize your ROI

Types of yield farming investments

Types of yield farming investments

Liquidity provision

Liquidity providers deposit two coins to a DEX to provide trading liquidity. Exchanges charge a small fee to swap the two tokens which is paid to liquidity providers. This fee can sometimes be paid in new liquidity pool (LP) tokens.

Lending

Coin or token holders can lend crypto to borrowers through a smart contract and earn yield from interest paid on the loan.

Borrowing

Investors can use one token as collateral and receive a loan of another. Users can then farm yield with the borrowed coins. This way, the farmer keeps their initial holding, which may increase in value over time, while also earning yield on their borrowed coins.

Staking

There are two forms of staking in the world of DeFi. The main form is on proof-of-stake blockchains, where a user is paid interest to pledge their tokens to the network to provide security. The second is to stake LP tokens earned from supplying a DEX with liquidity. This allows users to earn yield twice, as they are paid for supplying liquidity in LP tokens which they can then stake to earn more yield.

Get started on yield farming investing today!

ALL-ROUND PROFIT

With yield farming, token holders maximize rewards across various DeFi platforms and earn rewards in cryptocurrencies. Access top yield farming protocols include Aave, Curve Finance, Uniswap and many others, and avert risk due to price volatility, rug pulls, smart contract hacks and more.
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