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– TIMESTAMPS –
0:00 Intro
1:43 What’s Yield Farming?
4:50 Compound Yield Hacking
7:16 Incomes Comp Tokens
10:14 “Arbitrage” Yields
11:15 Liquidity Mining / Pool Tokens
13:05 Liquidity Mining with sBTC
15:10 Dangers of Yield Farming
17:06 Conclusion
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⛓️ 🔗 Useful Hyperlinks & Sources 🔗 ⛓️
► Compound Finance:
► Instadapp:
► Curve Finance:
► Mintr on Synthetix:
► DefiRate:
► sBTC Yield Farming:
► Compound Proposal:
► mStable Docs:
► bZx Assault:
► Balancer Disclosure:
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🤔 What’s Yield Farming? 🤔
It is a fairly broad time period that refers to chasing yield within the DeFi area. Mainly, allocating crypto to lending, borrowing and liquidity pool alternatives and utilizing interoperable protocols to reinforce that yield.
These are offered via quite a few dApps which I’m certain a lot of you’ve gotten already heard of. dApps and platforms similar to:
– Compound finance
– Maker Dao
– Uniswap
– Synthetix
👨🌾 Comp Yield Farming 👨🌾
Compound finance is a decentralised lending platform the place persons are matched via good contracts. In an effort to incentivise use they disbursed these Comp tokens.
This was primarily based on the rate of interest charged on the loans. Folks have been inspired to lend extra to earn. This meant the next rate of interest may very well be sponsored with Comp tokens. Those that are lending would additionally earn COMP tokens so that they have been additionally incentivised to do it.
These lenders would then use the funds that that they had deposited as a technique to take out a flash mortgage and earn themselves extra COMP. They’d additionally then take these flash mortgage funds and use them with a purpose to generate additional yield by lending once more
This allowed these farmers to earn yield in extra of 100%. Nonetheless, given a latest governance change, this mechanism has been tailored.
Yield farming can nonetheless be performed over on instadapp the place you possibly can present lending to different swimming pools.
🌽 Arbitrage Yields 🌽
Provided that there are totally different lending protocols and markets, you possibly can “arbitrage” out the relative yield distinction between these swimming pools and use that with a purpose to earn these governance tokens.
This consists of on platforms similar to Aave, MakerDao, Compound and so on. You may see a full overview of the totally different charges on the lend / borrow aspect over on websites similar to Defirate which break issues down fairly nicely.
👩🌾 Synthetix Yield Farming 👩🌾
You may present liqudity to swimming pools of Synthetix’s Artificial tokens over at Curve Finance. These are both for the sUSD stablecoin pool (with USDC, USDT, DAI) or to the artificial Bitcoin pool.
It will require you to sned your sUSD, WBTC or renBTC over to a curve finance pool. You’ll then earn liquidity pool tokens and rewards from balancer pool and Curve once they go stay.
The good thing about utilizing these Bitcoin tokens over USD backed tokens is that you do not have to surrender your upside on the Bitcoin with a purpose to earn yield in your Bitcoin.
⚠️ Dangers ⚠️
There are dangers from yield farming and these come from good contract vulnerabilities. There have been quite a few instances the place this has already occurred.
Just a few months in the past you had that flashloan assault that took benefit of bZx, fulcrum and some different protocols.
Just a few days in the past you had an assault on one of many Balancer swimming pools. This was fairly a complicated assault that once more used flash loans to take out a substantial place of wETH to commerce in opposition to the Statera funding token.
You even have the sting dangers that come from black swan occasions which might result in liquidations in swimming pools and vaults. This occurred within the MakerDao vaults again in March.
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📜 Disclaimer 📜
The data contained herein is for informational functions solely. Nothing herein shall be construed to be monetary authorized or tax recommendation. The content material of this video is solely the opinions of the speaker who will not be a licensed monetary advisor or registered funding advisor. Buying and selling Foreign exchange, cryptocurrencies and CFDs poses appreciable danger of loss. The speaker doesn’t assure any explicit consequence.
#defi #yieldfarming #Ethereum #crypto #compoundfinance #Synthetix #uniswap #flashloan
Source: Coin Bureau
50 Responses
People borrowing to lend, then borrowing again simply to lend. This is not going to end well for people.
check out Fantom its going to be huge
I've noticed that gas prices feel like extortion, any way around it?
I was getting 23% on bat for a little while. Dai is my fav stable and can usually get 4+% with dy/dx.
Would like to see a video of a defi gem called akropolis, love your insights and explanations on crypto projects. Big fan of yours from Nyc.
how can i know if this is a pay ad from compund guys ?
🧡💛💚💙 Great video Guy. DeFi is setting up Ethereum to catapult into the sky. It is a very interesting display of free markets working like a well-oiled engine… 🧡💛💚💙
Thank you. Just the Information I was looking for
$BNT has $10 written all over it!
These videos are brilliant, very educational everytime.
The rate paid to BAT lenders like me went from 25% to 0.6% in less than a week. I am new to this, and did not realize that rates could change that much, that quickly.
Wow this is an ocean lol , great job covering this vast ocean. I have an unrelated question , what do you think of the melon token ? Just searching for some undervalued defi plays
I want to understand all this. It seems way over my head but maybe if I listen again, some of it will sink in. I use Celsius. Is that similar? I know it probably is simplistic to all you’re teaching here.
Nice one guy…you always deliver, kudos
Juicy as always , you are one of my best with Chico Crypto and davincij15, you guys should do video together, my three crypto rising star.
He, you only talk about the investors. What kind of people actually lend the money in this space?
You are yet another crypto youtuber who fails to mention the ETH costs of using SNX (Synthetix) staking, where any action incurs an exorbitant fee, like getting charged USD$8 to claim rewards. Each time!!
Could you do xdai stake please
As always well done sir! And thanks for the mstable tip, this is the first I heard of it. For that I will share tip I heard recently: aave and balancer are working on something big together. Perhaps consider looking into some LEND and BAL before it comes out. Not financial advice. Thanks again for an awesome Defi break down!
I will have to watch through some of your previous videos for more background. Quite a mouthful, but I am already interested. You are the man to follow👍
Great video. Give Swissborg (CHSB) a look 👀
Unipower is the next gem ?
So Guy, you like anime is that it? 😉😉
Another informative video.
I love your vids mate I want to ask a quick question as I think you know a lot about anything to do with stocks can you make money day trading or is it a gimick as I want to take a course and have seen one that I am planing on taking ziptradeu what do you think please
Great video! Reserve is an interesting project you might want to check out.
Am I the only one that gets a C-3PO vibe from Guy? Must be the accent. Would make for a great Halloween episode. Great content regardless.
Brilliant overview of DeFi with useful specific details
It's not hacking if they work with the tools available..?
Always great videos, Guy! Love the Ethereum videos. Please more! too many ppl talk about btc all the time. Ethereum and its eco system is the future.
Thank you Guy. The only simple most honest and straight forward explanation of how DEFI works. ⭐️⭐️⭐️⭐️⭐️
Great, always good info and perfect accent
The Gold/usdc pool is over for SNX earnings…
Cheers Guido. Good info.
Thanks! I only invested in Aave and Kyber, because farming is too difficult to me. You pronounced Aave right, well done!
I use Celsius network and mixcoins
yield farming is next bitconnect
man what you think about TRON TRX
I smell Bitconnect piramid
Collateral in volatile crypto that is used 100% to buy more crypto. What can possibly go wrong? I'll pass. Thanks for the great content Guy!
pNetwork is still undervalued
Another great video, do have an opinion or thoughts on BNK- Bankera??
Awsome Guy….as usual! Thanks
You r best sir….. Thanks sir
Going to buy myself an Asic miner for my profits
ICO’s were immensely valuable to the space. We need to find a way to bring them back anonymously to ensure projects have a way to raise capital for innovation and continued research. It’s worth having despite the scams.
To complicated for me, Not your delivery Guy, just how to go about the whole affair. If there are winners in this, who are the losers?
Thanks guy, your channel is by far the best researched and presented on youtube this side of the pond.
Been lending sUSD on curve.fi and getting LP rewards on Synthetix; great way to get more SNX as you mentioned.
The Compound one is a lot more risky: with the loop of borrow <> lend it only takes the price of the COMP token falling enough to make the whole complicated endeavor not worth it
Great content as always!