What Is YIELD FARMING? DEFI Explained (Compound, Balancer, Curve, Synthetix, Ren)

Yield Farming is now one of the hottest topics in decentralized finance and there is a high chance you may have already heard something about insane returns that some of the yield farmers are making. So what is yield farming? How did it all start? What are some of the examples of yield farming? And also what are the risks involved? We'll be going through all of this in this video.

But before we start, if you're new to DeFi you may want to pause this video and watch my introduction to decentralized finance video first.

Yield Farming, in essence, is a way of trying to maximise a rate of return on capital by leveraging different DeFi protocols.

Yield farmers try to chase the highest yield by switching between multiple different strategies. The most profitable strategies usually involve at least a few DeFi protocols like Compound, Curve, Synthetix, Uniswap or Balancer. If the strategy doesn't work anymore or if there is a better strategy available the yield farmers move their funds around. They may, for example, move the funds between different protocols or they may swap some of their coins to other ones that are currently generating more yield. In our yield farming world, this procedure is sometimes called crop rotation.

Useful links for yield farming

[allgravy]

I really admire people like you who are smart enough to not only understand this stuff, but able to teach it too.

[briankuhn]

I will now laugh every time someone calls yield farming “passive income.” This requires A LOT of continuous tracking and research… and figuring out taxes after that many transfers, rewards, and air drops! 😣 Hats off to the individuals who can make $$ doing this!

[GotDown]

Look brother, If you just keep this up, keep producing videos no matter how simple you think they may be to you, they will be very informative to other people and you will be soon the most popular Crypto/Financial Channel on Youtube. You were so awesome I literaly just watched very video you have in one sitting man tonite.... Brother keep going keep going keep going. God Bless from USA GA, Luda Miz Crypto

[matthewwilliams]

Got to say. This is one of the best crypto explanation channels I've ever come across. I just got into this space and the speed of the movement around DeFi and liquidity pools quickly overwhelmed. Me. Your videos have been a big help in actually understanding what is going on and knowing what tangibly is happening.

[roberthintze]

You are extremely knowledgable in these areas - I know now how my grandparents must have felt when they first met someone trying to explain to them what a computer was and it's future potential. I realize now that the crypto mountain I just climbed with much struggle, is minuscule compared to what peaks lies ahead of me.. Thanks for your great teachings

[BitesizeCrypto]

This is the best and most concise overview of yield farming that I've seen. Subscribing!

[ignaciogimenez]

Man what you are doing in your channel is fantastic. Above excellent explanation and easy understanding, plus a great video edition. Thanks for this, you really help to the new DeFi community!

[ilpatriz]

This is probably the best teaching-channel I happened to find in the last 2 years

[Finematics]

❓What is your favourite yield farming strategy?
👍Hit the like button if you enjoyed this video

[TreyMohr]

Just a few of the unanswered questions in the very first explanation: What is Synthetix? What does "adding liquidity" mean? What is SETH/ETH pool? What is Uniswap? What are SNX tokens? Other than the fact that you threw all of those terms at us back-to-back without explaining any of them, this was a great explanation.

[josheli]

Most underrated series giving valuable info about crypto. Seriously write a book man, you will get 10, 000x more than what youtube pays you

[Sharkvaro]

i just found this hidden gem of a channel!

[quocanhbach]

I am feeling so stupid being not able to understand all of these while everyone else in the comment section below praising him of his excellent work. :D Thanks for the video anyway

[bekt]

I watched 4 videos on this and had no idea what they where blabbering on about. Then found this video. Thank you for the simple explanation

[valentineobidi]

You just simplified a number of complex defi concepts in just 11mins! Thank you

[sesetio]

I watched this video like 8 times. I finally understand now! HNY and may the harvest feed you well <3

[LemonGeckos]

I really appreciate the clear and concise explanations of complex topics, thank you!

[Maros_Mari]

Well explained in the entertaining way. Much appreciated.

[gjlite]

These videos on DeFi and Yeild Farming have been a fantastic educator for a nearly 50yo novice. How about a video on Thorchain and Asgard DEX LP?

[thekilla]

Please create more videos. You're doing a really good job