Make Income with Yield Farming in DeFi

At the time of this writing, the biggest trend in decentralized finance is “yield farming”, which is just a quick way of saying strategies that involve temporarily placing your cryptocurrency into various DeFi applications offering huge returns. Often these returns aren’t sustainable, but if you can get your crypto in and out in time, the money grows nicely in your favor. Obviously, this kind of investing requires a more seasoned crypto trader and a lot of due diligence. This post will get more into this, including a video that’ll further bring some light to this topic. However, if you don’t know what DeFi is, it’s better if you educate yourself with this post first.

Chasing Yield

In the simplest terms, yield farming is any strategy that puts crypto assets to work to generate the most returns possible. For instance, we talked about Compound in a previous post. On a weekly basis, a yield farmer might move crypto around within Compound, constantly chasing whichever pool is offering the best annual interest. Of course, this might mean moving into riskier pools from time to time, but risk is the name of the game if you want to maximize your earnings.

Yield farmers typically use stablecoins, such as Dai, Tether (USDT) or USD Coin (USDC), since they provide a quick way to track profits and losses. However, it’s also common…