What Is YIELD FARMING? DEFI Explained (Compound, Balancer, Curve, Synthetix, Ren)

Yield Farming is now one of the hottest topics in decentralized finance and there is a high chance you may have already heard something about insane returns that some of the yield farmers are making. So what is yield farming? How did it all start? What are some of the examples of yield farming? And also what are the risks involved? We'll be going through all of this in this video.
But before we start, if you're new to DeFi you may want to pause this video and watch my introduction to decentralized finance video first.
• What is DEFI? Decentra...
Yield Farming, in essence, is a way of trying to maximise a rate of return on capital by leveraging different DeFi protocols.
Yield farmers try to chase the highest yield by switching between multiple different strategies. The most profitable strategies usually involve at least a few DeFi protocols like Compound, Curve, Synthetix, Uniswap or Balancer. If the strategy doesn't work anymore or if there is a better strategy available the yield farmers move their funds around. They may, for example, move the funds between different protocols or they may swap some of their coins to other ones that are currently generating more yield. In our yield farming world, this procedure is sometimes called crop rotation.
Useful links for yield farming
Easy DeFi management ► instadapp.io/
Latest, top yield farming options ► yieldfarming.info/
APY calculations ► www.predictions.exchange/
Website ► finematics.com
Post ► finematics.com/yield-farming-...
Patreon ► / finematics
Follow me on Twitter ► / finematics

[@allgravy8155]

I really admire people like you who are smart enough to not only understand this stuff, but able to teach it too.

[@Finematics]

thanks a lot! Appreciate your comment 💛

[@sesetio338]

He's going to benefit from it in the future. Once this becomes mainstream he will be HUGE ASFUDGE!

[@tg3470]

i agree with this sentiment. Thank you sir for the great content.

[@andrear.n.5745]

Thanks so much Mr.Fine-matics

[@raulnunez236]

me lo ha ticheado como mi puta madre

[@briankuhn7396]

I will now laugh every time someone calls yield farming “passive income.” This requires A LOT of continuous tracking and research… and figuring out taxes after that many transfers, rewards, and air drops! 😣 Hats off to the individuals who can make $$ doing this!

[@crunkpunk419]

Taxes are the easiest part if you're using defi and the roi is still better than traditional finance.

[@BrettWrightsPage]

@@crunkpunk419 question for you. If you provide liquidity for ETH, do the taxes work the same as just owning it? Even though you don’t own eth, you own the LP token?

[@crunkpunk419]

@@BrettWrightsPage Im not sure. Im an LP for a few different farms, but they are all defi.

[@barryboner1332]

@@BrettWrightsPage great question lmk when you know😂

[@tkkunaka2630]

With pulsechain you can stake in yield farmers so yeah it becomes passive

[@valentineobidi9686]

You just simplified a number of complex defi concepts in just 11mins! Thank you

[@1883GotDown]

Look brother, If you just keep this up, keep producing videos no matter how simple you think they may be to you, they will be very informative to other people and you will be soon the most popular Crypto/Financial Channel on KZbin. You were so awesome I literaly just watched very video you have in one sitting man tonite.... Brother keep going keep going keep going. God Bless from USA GA, Luda Miz Crypto

[@Finematics]

Thanks!! Appreciate your comment! :)

[@alexishaebinkim4633]

100% agree. I love your channel, really great content

[@alexishaebinkim4633]

100% agree. I love your channel, really great content

[@Sharkvaro]

i just found this hidden gem of a channel!

[@BananasBasically]

2nd that

[@ilpatriz]

This is probably the best teaching-channel I happened to find in the last 2 years

[@Finematics]

Thank you!

[@josheli3749]

Most underrated series giving valuable info about crypto. Seriously write a book man, you will get 10,000x more than what youtube pays you

[@ignaciogimenez8282]

Man what you are doing in your channel is fantastic. Above excellent explanation and easy understanding, plus a great video edition. Thanks for this, you really help to the new DeFi community!

[@Finematics]

Thanks Ignacio!

[@28annabel]

couldn't agree more

[@Resistance_is_futile1337]

Am i the only one missing time to keep informed about all this stuff at once

[@Bringdasnowmonster]

The crypto world is rapidly changing by the month and is in such a progressive stage right now. Don't lose sleep over it. There's still plenty of opportunities

[@Bringdasnowmonster]

@Hisham Ferjani Yes and if it is not crypto, it will be something else. But as for now, the crypto world is still in an extremely early stage of development. PoS is only a couple of years old and yet people are still mining which is already a 7 year old crypto-earning strategy. Just need to diversify the ways in which you know how to profit.

[@arthurfagen5748]

Kafka?

[@MrJypsye]

the space moves so fuking fast

[@pco2004]

Same. I was deep into crypto in 2017 and was fairly knowledgeable then but the info curve is exponential in this space. I can hardly keep up but I'm getting there. Watched like 5 vids just today to understand the whole DeFi space better.

[@matthewwilliams3086]

Got to say. This is one of the best crypto explanation channels I've ever come across. I just got into this space and the speed of the movement around DeFi and liquidity pools quickly overwhelmed. Me. Your videos have been a big help in actually understanding what is going on and knowing what tangibly is happening.

[@Finematics]

Thanks Matthew! I'm glad you find them helpful :)

[@mcstanley1156]

You are so right about the Channel... I am new too.. But the understanding I have about this industry is coming from this channel. All Glory to the Holy spirit.

[@LemonGeckos]

I really appreciate the clear and concise explanations of complex topics, thank you!

[@Finematics]

❓What is your favourite yield farming strategy? 👍Hit the like button if you enjoyed this video 🐦Follow Finematics on Twitter ► twitter.com/finematics 💛Support Finematics on Patreon and join our Discord community ► www.patreon.com/finematics

[@roberthintze339]

You are extremely knowledgable in these areas - I know now how my grandparents must have felt when they first met someone trying to explain to them what a computer was and it's future potential. I realize now that the crypto mountain I just climbed with much struggle, is minuscule compared to what peaks lies ahead of me.. Thanks for your great teachings

[@Magnanimousking92]

Calmest voice in all crypto youtube industry. Such a great alternative to all those super-hyped kids who contradict themselves from one day to another. Facts, explanations, no bat-shit-crazy x 1000000000 gain overnight FOMO push videos for bitchbait cash. So cool, I mean I would listen to you talking about nail polish remover if that would be the next topic chose in the coment. Please just keep it up :D

[@Finematics]

Hah thanks for a great comment! :)

[@ninasanders9254]

There are many avenues to farm DeFi yields and many ways on how to go about them. One way to farm yields on DeFi is through liquidity pools. Here we have protocols like Anyswap, Uniswap, Burgerswap, etc. Anyswap is a coin swap protocol and offers rewards to users for providing liquidity. For example, there are up to 15 million ANY available as liquidity rewards to users eng.ambcrypto.com/yield-farming-lessons-for-investors/

[@RealRahman75]

Well said boss! It seems to me sometimes they don't know what they are taking about.

[@eztyson]

Alan Watts speaking the truth as usual 😃🙌🙌

[@gustav8502]

how the hell do you enjoy this voice hahhaha

[@BitesizeCrypto]

This is the best and most concise overview of yield farming that I've seen. Subscribing!

[@Finematics]

Thanks!! :)

[@user-bk3ji6gu5x]

I've also subscribed, and this is the first time I've heard such a detailed interpretation

[@Maros_Mari]

Well explained in the entertaining way. Much appreciated.

[@sesetio338]

I watched this video like 8 times. I finally understand now! HNY and may the harvest feed you well

[@quocanhbach6696]

I am feeling so stupid being not able to understand all of these while everyone else in the comment section below praising him of his excellent work. :D Thanks for the video anyway

[@keithfairley7703]

Even I can understand this and that is saying alot. Great teaching!

[@bekt7910]

I watched 4 videos on this and had no idea what they where blabbering on about. Then found this video. Thank you for the simple explanation

[@thexdrago1]

LOL subbed to you during this DMM, then randomly stumble upon your comment here. Small world. Nice videos btw

[@PunaBeachboy]

One of the best shows on the internet.

[@digeratidesigns]

Wish I found this video last July....

[@roberts1782]

Thank you. looks like I will have this material once again.

[@VisionofTomo]

Honestly amazing videos! All of them!! Thankyou for creating these!!

[@Finematics]

Thanks a lot! :)

[@trentherring156]

Great video for newbies. Thank you!

[@thekilla42]

Please create more videos. You're doing a really good job

[@Finematics]

Thanks! More videos coming soon

[@thekilla42]

@@Finematics can you make one on thorchain rune please ?

[@pratikgautam2862]

You are the best I could find to understand this, god bless you 🙏

[@bonzo1928]

Again, all very clear, many thanks!

[@Burbie]

Thanks a lot for the videos u make , it's so helpful for beginners like me

[@CatalinRosescu]

Such a great way of making those videos understandable for anyone, well done mate 👍! You never say anything about ELROND that’s even better and faster comparing with ethereum

[@user-bk3ji6gu5x]

Yes, I am a fool. I understand now

[@jadephish9005]

Well that sure was informational! I just don't even know where to start now. LMAO. I am gonna rewatch the video all at once and hopefully retain more this time. I stay medicated too much haha

[@pco2004]

I usually watch info vids from 1.5-2x speed but this was one of the few vids in a while that I had to watch at normal speeds. lol. great job on explaining.

[@supersaiyingoku]

Damn … i was looking for this for so long … thank for the explaining ~!

[@gjlite4947]

These videos on DeFi and Yeild Farming have been a fantastic educator for a nearly 50yo novice. How about a video on Thorchain and Asgard DEX LP?

[@Finematics]

Thanks! There is a plan to make a video on Thorchain :)

[@TreyMohr]

Just a few of the unanswered questions in the very first explanation: What is Synthetix? What does "adding liquidity" mean? What is SETH/ETH pool? What is Uniswap? What are SNX tokens? Other than the fact that you threw all of those terms at us back-to-back without explaining any of them, this was a great explanation.

[@Finematics]

Thanks for your feedback. Unfortunately to explain every single concept in every video each video would have to be 20+ minutes long which would take me something like 40 or more hours per video :)

[@danieldixon6800]

Hello! I enjoy your videos. They're easy to follow with lot of content to disgust. I was hoping you could do a video explaining YFI's Yvaults? Either way ill be back for what you put out next. Thanks!

[@mysticdharma]

Thanks! I appreciate your work very much, like you explain the thinks easy and easy to understand!

[@Finematics]

thanks!

[@bigfatbonus]

Excellent video. Thank you for easy & detailed explanation.

[@Finematics]

Thanks David!

[@Gbzinho35]

Your channel is a treasure, keep up the great work!

[@Finematics]

thank you! :)

[@MrMadnelsen]

Lol. I wish i would have found this channel 2 months ago... shieet

[@ronnywilliams3302]

Shieeeet

[@stressrelief9597]

Nicely explained video! I am using yield farming on Anyswap...i learned that from here: www.newsbtc.com/press-releases/any-yield-farming-with-anyswap-pool/ Great network to work with.. ;)

[@themudstar4999]

same lol but i guess if time machines existed we wouldn't have the markets right?

[@galeafou2780]

you are given info when the right guys already made 80% of the profit... dont worry ... you are not alone... you are the 99%

[@mr.equity1120]

lol that’s me now!

[@tarekghosn3648]

you actually are the best out there

[@SunnyGirlFlorida]

Thank you. Your videos help me a lot!

[@Finematics]

You’re welcome!

[@LearnEnglishwithTrev]

This guy really knows his stuff

[@HJ-ih4iz]

DRIP is the king of defi yield farming.With launch of the v2 animal farm later this year, DRIP will have the strongest ecosystem in defi. It has a very large community and it's main developer has a long and trustworthy trackrecord. I'm not a financial advisor, but to me the future of DRIP looks very bright.

[@pinoysmartcontract4243]

Nice video. Thanks for the explanation ☺️

[@AcquisitionHub]

This is a very interesting video. It may be even more helpful for us listeners to include additional references to the traditional world of finance.

[@shashankcg5029]

great job! Thanks

[@KylerAuston]

I have a potential writing job relating to a specific company in this space- phew, glad I'm a technical reader, as this was complex, but digestible.

[@trondemicofficial3056]

Good news sir! We just started on 2nd October and offer reasonable daily return (3% to 6%) defi smart contract with guaranteed reserved fund! Minimum only 10 trx.All the best!

[@cryptodime2791]

Great video!!! Great explanations and great drawings!

[@Finematics]

thanks!

[@tobiprivat8878]

great! totally underrated content!!

[@scienceoffin]

Fantastic vid on yield farming!

[@adeotijoshua6427]

Excellent. Top quality content.

[@themcfaceman]

underrated channel 😳

[@Finematics]

Thanks!

[@jameswright5417]

Absolutely awesome content!

[@landitrainingbali4842]

I listen to this guy many times everyday. This Guy has made me who I am in crypto trading/investing. This sounds like Quinton of young & investing. I make money now because of this Guy. This guy does not bullshit.

[@alialerya8288]

MAN you are the best of them all

[@Finematics]

thanks!!

[@keanugoel5531]

Nice video... Very informative

[@pierrevvr]

What a job! Well played dude

[@busterhimen88]

Appreciate you! That was awesome

[@matthenderson2416]

Great explanation. Thanks again 👍

[@Finematics]

thanks for watching and commenting Matthew!

[@ifeanyichukwuOkonkwo]

Thank you for this video. I want to get into yield farming on UnidoEP, but I want to ensure I understand it, because this is my first time.

[@DesirzZNetwork]

This is beauty, imagine the data you can harness and different patterns of rotations. Sheesh.

[@kalpeshmehta9961]

excellent presentation for people getting into this space.. super

[@Finematics]

thank you!!

[@shahmau]

great explanation! what software do you use to put this together, really cool!

[@shahinrajabi7137]

Your videos are great thank you for sharing them

[@Finematics]

Thanks! :)

[@gate7674]

Please make a video on how to identify good Yield farming projects. How do you identify the next opportunity should a projects yield be no longer lucrative?

[@mkeshlaf]

thank you

[@domthedefiguy7903]

WAY more than 100% APY... ! Great vid.

[@dianarobles847]

Amazing thank youuuu

[@JOHNSONPARTNERS]

Could you speak about the new "Binance Liquid Swap" ? In particular about the "liquidity provider" side of the equation? and the risks involved? Thank you

[@sh3llbac]

THANKS!!!

[@blackmonster8300]

WhaleFarm Finance will skyrocket!

[@chethihoamay1895]

I find the video very good and useful , helping us to study and learn faster. I like it very much

[@Finematics]

Glad to hear that! Thanks :)

[@haiderh1339]

I mistakenly watched one of his videos and the channel has sucked me in.

[@ImfamousRajat]

Hi mate, thanks a lot for this great video. I was wondering, which software do you use to create animated videos like this one?

[@williambreeze2659]

Thanks for the video.

[@Finematics]

Thanks for watching!

[@LokiBeckonswow]

great explanation, cheers

[@vladx3539]

Great stuff.. One English tip... it is PrOfitable...not profItable... pró is stronger :)

[@r3exs3um47]

Great Vid! Do you receive liquidity mining rewards twice when borrowing? (Once for the collateral, and once for the borrowed amount)? Or to ask differently, do you receive the same liquidity mining rewards for lending and borrowing?

[@cryptoaddict6715]

Should be a class taught by u at MIT!!!

[@dmak8029]

Great video - one thing I’m trying to understand though, is what are the risks of yield farming lending??

Great channel and content!

[@Finematics]

Thanks!!

[@Interdisciplinary]

hi finematic! Just come across your fantastic storytelling videos on defi and I love it!! Wanna ask your permission to translate them into Mandarin to share with more folks in CN community

[@juanseverino4231]

Actually, yes. Great channel. The narrative is excellent. I would personally like to see a different style of drawing animation though. The "writing hand" is ok but for longer and more complex slides turns bit too repetitive. The content again: terrific. Keep it up man!! cheers

[@michaelargento666]

Keep creating your art the way that it inspires you. We'll be the grateful students @finematics

[@janthe6th]

thank you for the video. in the description you have a link to a prediction site for the APY calculation. Is that an error? If not how is it supposed to be used?

[@MegaVikooo]

Lixir is coming soon and will change the Game of yield farming, on the new Uniswap V3. Good explained and you have a new subscriber. Really Good!

[@michellepatriciarazafindra3959]

good video

[@weizhezhang8392]

Thank you for your video! And I also have a question: who design these strategies, the yield farmer, the LP, or the platform? If so, why would the counterpart adopt these strategies if not just out of a desire for liquidity?

[@jonoh404]

great video

[@nikec8101]

0:43 the start

[@billalhossen1317]

Nice

[@ondanomada]

this stuff should be taught in primary schools... we'd have a completely different and better world in a couple of generations

[@kenczerwinski6365]

A video on Balanced/ICX would be nice. Thanks.

[@kenviro2010]

Very good video. It makes me understand the concept better. Now I need to find out exactly how to do it.

[@jesseeckel9139]

Hahaha you are right, I’m currently making research on any good farm to start up.

[@jesseeckel9139]

You dabble in crypto?

[@kenviro2010]

@@jesseeckel9139 yeah, I put money into potential altcoins and do a bit of trading. Would like to connect with you. I can be reached at @kenviro in Telegram.

[@AJ-hg2ki]

Good subject next might be to explain how to check out what different coins/tokens do - how to check use cases, daily trading volume, whether there is wash trading happening, etc etc. Just an idea

[@Finematics]

good idea! I'll be definitely reviewing some of the DeFi projects/coins

[@shuvamoyghosh4919]

detailoed riski & rewards for yield farmers? how they change their strategis,different crops?request you to make some content.Thanks in advance

[@deerpathworld8260]

Thanks man

[@alanprice2002]

Sounds like fractional reserving and mortgages back securities?

[@Sam-ko8mt]

High risk, high potential reward. BUT: also high potential loss. This yield farming will likely cause a lot of People to lose A LOT of money. It then either dissappears all together or will get regulated I think. High risk is called high risk for a reason; once it goes wrong, it goes wrong badly

[@michaelguider4136]

I love the videos I’m glad the Sonar $ping group brought me over here