George Harrap is a veteran crypto entrepreneur currently serving as the co-founder of Step Finance, a Solana-focused portfolio management dashboard, and Head of DeFi at YAP Global, a PR agency specializing in crypto, blockchain, and fintech.
Yield farming on decentralized finance (DeFi) protocols is evolving quickly as it overcomes teething problems. It’s now moving from an obscure financial strategy into an easy way for even the less-than-fanatic user to maximize profits and reduce risks. But in this relatively niche field there is still lots of room for improvement.
This piece covers how the yield farming space is changing, how the average farmer can maximize their crypto returns and reduce risks, and overall trends in the space.
Yield farming in DeFi is a way for liquidity providers to put their existing capital to use by lending or staking their idle assets in various liquidity pools in a DeFi market to earn passive income.
This interest in yield farming may be credited to Compound (COMP), the Ethereum (ETH)-based money market protocol, which began issuing its governance token, COMP, to users last June. While Compound did not invent yield farming, the distribution of its token attracted liquidity providers to farm COMP by supplying liquidity to the protocol, creating a massive incentive for users to farm.
Since then, new blockchains with lucrative projects