So is Yield Farming dead? Are there any good farming opportunities left? And when are 1000% APYs coming back? We’ll answer all of these questions in this video.
Before we jump into the main topic, let’s quickly recap what yield farming actually is.
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. If the strategy doesn’t work anymore or if there is a better strategy available the yield farmers move their funds around.
Liquidity mining plays a big role in yield farming to such an extent that sometimes these two concepts are used interchangeably. Liquidity mining is a process of distributing extra tokens to the users of a protocol, for example, Compound distributing COMP tokens to lenders and borrowers on their platform or Uniswap distributing UNI tokens to their liquidity providers.
If you haven’t watched it yet, I’d recommend watching my other video on Yield Farming to understand these concepts even better.
So are there any opportunities left in a down-trending market?