Yield Farming

AMMs, lending, yield, impermanent loss, and self-custodial finance.

Updated 2026 ж. 21 қаз.GaiaEx Academy Editorial

Бұл сабақта

What yield farming is
Why high APYs signal risk

Негізгі тұжырымдар

1Yield farming supplies capital to DeFi for rewards
2Rewards may come from emissions, not real revenue
3The highest APYs usually carry the highest risk

Сабақ қорытындысы

Yield farming means supplying assets to DeFi strategies in return for fees, interest, or token rewards.

Mental model

Yield Farming, without the jargon

Yield farming means supplying assets to DeFi strategies in return for fees, interest, or token rewards. The yield is only meaningful if you know who pays it.

What yield farming is
Why high APYs signal risk

Mechanics

How to reason about yield farming

Real yield may come from trading fees, borrowing interest, or protocol revenue.

Incentive yield may come from new token emissions.

APY changes as liquidity, demand, token price, and risk change.

Yield farming supplies capital to DeFi for rewards
Rewards may come from emissions, not real revenue
The highest APYs usually carry the highest risk

Example

Yield Farming, applied

A pool paying 80% APY in reward tokens can become unattractive if the token price falls faster than rewards accrue.

Есте сақтаңызDecision rule: Do not enter a farm until the source of yield and exit liquidity are clear.

Common mistakes

Common mistakes with yield farming

Chasing the highest APY without identifying the source of yield is one of the fastest ways to take hidden principal risk.

Risk notes

Before you rely on yield farming

Smart-contract loss, reward token collapse, impermanent loss, oracle failure, and liquidity flight can erase yield.

Separate fee yield from emissions.
Check contract and oracle risk.
Estimate exit liquidity.

Practice

Practise yield farming before moving on

Separate fee yield from emissions.
Check contract and oracle risk.
Estimate exit liquidity.

Қайталау

Негізгі терминдер

DeFi: Decentralized Finance — permissionless, composable financial services built on smart contracts.
Impermanent Loss: The loss a liquidity provider faces when pooled asset prices diverge versus simply holding them.
Liquidity: How easily an asset can be bought or sold without moving its price much.
Oracle: A service that feeds real-world data (like prices) to smart contracts on-chain.
Smart Contract: Self-executing code on a blockchain that runs exactly as written when conditions are met.

Дерек көздері