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Yield Farming: MAXIMISING DEFI GAINS!! πŸ‘¨β€πŸŒΎ



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πŸ“Ί Compound Finance Vid πŸ‘‰
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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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⛓️ πŸ”— Useful Hyperlinks & Sources πŸ”— ⛓️

β–Ί Compound Finance:
β–Ί Instadapp:
β–Ί Curve Finance:
β–Ί Mintr on Synthetix:
β–Ί DefiRate:
β–Ί sBTC Yield Farming:
β–Ί Compound Proposal:
β–Ί mStable Docs:
β–Ί bZx Assault:
β–Ί Balancer Disclosure:

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πŸ€” What’s Yield Farming? πŸ€”

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

πŸ‘¨β€πŸŒΎ Comp Yield Farming πŸ‘¨β€πŸŒΎ

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.

πŸ‘©β€πŸŒΎ Synthetix Yield Farming πŸ‘©β€πŸŒΎ

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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πŸ“œ Disclaimer πŸ“œ

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

  1. πŸ§‘πŸ’›πŸ’šπŸ’™ 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… πŸ§‘πŸ’›πŸ’šπŸ’™

  2. 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!!

  3. 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!

  4. 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

  5. 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.

  6. 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

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