The magic of computer programs called smart contracts pave the way toward a secure and reliable financial world wherein anyone can find his or her holy place on the island of passive income. It involves users merely lending funds to newborn tokens and earning fees in the form of crypto in return. Simple enough, huh? Well, not so fast.
Yield farmers rely on very complicated strategies, constantly moving around their crypto across various lending marketplaces to maximize their returns. They also remain very secretive about the best yield farming strategies. Why? The more people who know about a strategy, the less effective it may become. Yield farming is truly the wild west of Decentralized Finance (DeFi), wherein farmers compete for a chance to farm the best crops.
Profitable farming (yield farming) is a young but already popular way to earn cryptocurrency, appearing alongside DeFi industry growth. Farming, or liquidity mining, refers to building complex strategies that combine lending, staking and storing crypto assets in DeFi protocols while obtaining passive income in tokens. As part of the strategy, farmers are rewarded for contributing liquidity to the project pool with credit or staking cryptocurrency assets. Many DeFi projects issue tokens that determine the user’s share in the liquidity pool, which can be moved to other platforms to increase their potential benefits. Depending on strategy complexity, the number of tokens involved in profitable farming can vary from one to several (often seven or eight).
However, experience shows the more tokens and protocols are used in a farming strategy, the greater the risk for the liquidity provider. In order to minimize risks and maximize potential profits, “farmers” must have at least basic knowledge about cryptocurrencies and the best strategies to turn a profit.
YearnAgnostic Finance is a blockchain agnostic decentralized finance (DeFi) aggregator platform that supports DeFi projects deployed on Ethereum blockchain and Binance smart chain. We are focusing on simplicity, user experience, privacy and global adoption. It provides a classical way to earn a yield on assets through our series of products in an optimal manner.
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