Yield Farming Crypto Tutorial. The goal is to expose more defiant readers to new defi. Basically, yield farming is the practice of saving and borrowing crypto assets to generate high yields.
As this is leveraged farming, the apy gains are increased. Still, it remains highly experimental and serious risks lurk behind the memes and promises of high returns, including the danger of defi protocols being taken over by crypto “whales.” You can see the original expected apy crossed out beneath (36.96%) if you were to farm without leverage.
In this example, we can see that the yield farming itself will generate 33.73%.
One of the many benefits of a crypto bull market is that those who have spent the time and energy to study and apply their knowledge can compound their profits using highly complex and innovative strategies, one of which is known as yield farming. Or generate crypto assets with the crypto assets you have. Usually, people think that the key to holding crypto as an investment is just to leave it in cold storage. I’ll answer the question, “what is yield farming?” in simple terms, we’ll talk about the type of returns you can expect using yield farming, and the major.