Yield Farming
Yield farming means moving your crypto between different DeFi protocols to maximize returns. You're chasing the highest yields by lending, staking, or providing liquidity wherever rates are best.
Understanding the Concept
Yield farming can generate insane returns—50%, 100%, even 1000% APY. But those yields come from token emissions (you're getting paid in the platform's often worthless token) or are unsustainable Ponzi-nomics. The real farmers are sophisticated. They understand smart contract risk, impermanent loss, and gas fees. They move fast when opportunities appear and exit before yields collapse. For regular people, yield farming is dangerous. You might earn 200% APY but lose 50% to impermanent loss and another 20% to gas fees. Then the token you earned dumps 90%. You'd have made more just holding ETH. Still, for those who know what they're doing, it's free money on capital that would otherwise sit idle.
Real-World Example
You put ETH-USDC into a liquidity pool earning 15% APY, then stake the LP tokens in a farm earning another 40% in governance tokens. Total APY: 55%. Until the governance token crashes or the pool gets exploited.
How Strykr Helps
Strykr tracks Yield Farming developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
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