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DeFi Yield Farming: You’ve seen the term everywhere. Here’s what it is.

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What is Yield Farming?

Yield Farming is essentially the act of users putting in their own funds to provide liquidity to the various DeFi protocols to “farm” the best “yield” which is in the form of native tokens for the respective protocol, thus earning additional capital.

DeFi Yield Farming – The insignia of DeFi

DeFi is an umbrella term referring to the interrelatedness of different crypto assets, Decentralized apps, smart contracts, and protocols, most of which are built on the Ethereum blockchain platform. The Decentralized finance (DeFi) ecosystem is one of the fastest-growing sectors that continues to attract new users and investments, with the current value within the DeFi ecosystem being close to touching $1.52 billion. 

Whereas Bitcoin allowed individuals to make transactions without the need of an intermediary, the Ethereum blockchain added another layer of programmability with the use of smart contracts. Now, the DeFi vision integrates the concept of the decentralized financial system with the offerings of traditional products but without any central authority.

Recently DeFi Pulse announced that Compound was the largest DeFi protocol because a multitude of traders are migrating to Compound to farm COMP. Compound is now the largest application in terms of the DeFi value locked into the protocol.

yield farming

Yield Farming and DeFi

Yield Farming is not a brand new concept but it surely has received a lot of attention this year. 

To those who are new to the concept of DeFi yield farming and have been hearing it mentioned quite a lot lately but still do not know what it is yet, here it is again:


Yield Farming is essentially the act of users putting in their own funds to provide liquidity to the various DeFi protocols to “farm” the best “yield” which is in the form of native tokens for the respective protocol, thus earning additional capital.


The concept of Yield farming was accelerated by Compound and the distribution of their governance token – COMP. This new surge of interest led to more than $1Billion in new capital overflow in the protocol, with other lesser-known tokens like BAT seeing a jump of 20,000% in demand as traders moved to farm COMP.

Breaking Down what Yield Farming is

Yield: Returns or earnings generated and realized on a particular investment over a specific period of time, expressed in a percentage.

Farming in the case of yield farming is more like searching, harvesting, and cultivating.

Ok so let’s take a look at yield farming.

Numerous DEXs (decentralized exchanges)and protocols are always looking for liquidity providers, to ensure a functioning and flourishing enterprise.

If you lend out your digital assets and provide liquidity to one of these DEXs, in addition to what you gain on the amount you provide in terms of liquidity, you are rewarded with tokens. This is the yield you have earned, in the form of tokens, thus acquiring additional capital.

The farming part of the term refers to picking and choosing the best rates from the various protocols, and harvesting the yield based on your work.


This year an increasing focus has been on yield farming activities which are already a part of the DeFi ecosystem with projects like Compound, Synthetix, and Balancer.

yield farming

COMP Yield Farming

Compound’s reward system has attracted the likes of many traders. Compound for the next 4 years will be rewarding a balanced allocation of its COMP token out of which 2880 are distributed daily. The attractiveness of the reward system has caught the eye of traders who have moved their assets into Compound to start Yield Farming COMP distributions. Other supportive projects like InstaDApp are helping COMP farming with its widget called ‘Maximize $COMP mining’ to enable users to get into this with just a click. 

yield farming

sUSD Yield Farming

Synthetix is a decentralized synthetic asset issuance protocol that is collateralized by the Synthetix Network token (SNX). Built on the Ethereum platform, the SNX tokens allow for the issuing of synthetic assets. In March, Synthetix initiated an incentives program for liquidity providers of sUSD which is the native stable coin of Synthetix. The campaign with a test period of 4-weeks, launched through the Curve and iearn exchange protocols, yearns to distribute 32,000 SNX tokens on a pro-rata basis to providers who stake their Curve LP tokens. This was an attractive prospect for yield farmers because you are earning interest on your stationary digital assets and liquid assets which can be sold off immediately. 

BAL Yield Farming

Balancer, an automated market maker is a scalable protocol that allows its users to generate liquidity pools made of ERC-20 tokens. Balancer, in a bid to become fully decentralized, has launched its own liquidity campaign. BAL is the governance token of Balancer with 65 million sets aside for every 100 million BAL minting for the liquidity providers. At present 145,000 BAL are being distributed to liquidity providers every week attracting traders to park their funds in Balancer pools so that they can yield farm the BAL rewards. 

Behind all this, Synthetix and Ren have created another Balancer pool for SNX and REN  in which the liquidity rewards are distributed in the form of wrapped SNX and REN. The Balancer pool also will earn BAL tokens which would be redirected to the Curve BTC liquidity stakeholders. The Curve Liquidity provider tokens CRV could also be earned through the main BTC pool which also will be going back to liquidity providers. But both BAL and CRV are not on the open market yet and once they are available, they will be distributed on a pro-rata basis. Every week providers will get wrapped SNX & REN, BAL & CRV in tandem to their Curve BTC liquidity contributions. 

Yield Farming 2020 and Onwards

Yield Farming has just started but the amount of opportunities it presents to traders to earn interest on their capital is never-ending. Its popularity is all set to skyrocket in a few months to come.

Yield Farming makes a lot of sense to users in the fact that:

1. Most all digital assets and tokens are kept on exchanges doing nothing when they could be earning interest.

2. The respective decentralized exchanges (DEXs) have spreads that are competitive and offer higher lending rates than centralized exchanges.


Yield farming is an attractive and exciting new development for both lenders and borrowers, and will definitely be getting more attention (a lot more) this year.


Check back in at DeFiRev.com to find out the latest in DeFi News and on yield farming.


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MetaMask Swap : Here’s What you Need to Know

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MetaMask Swap :New feature Token Swap pitched for best trading experience in DeFi

metamask swap

MetaMask Swap has now officially launched. Metamask is a broswer extension and the most popular and used wallet and gateway for Ethereum. Metamask rose to great prominence this year with the ascension of Uniswap.

Now ConsenSys has recently made a big announcement – a new feature it has added in its kitty which is stated to resolve ancient issues of crypto wallets. The MetaMask Swap feature introduced by the giant aims to compare as well as swap tokens directly within MetaMask.

MetaMask has grown from strength to strength and has emerged as a wallet trusted by millions. It now has more than one million active users of its wallet services and is trusted by them to securely store their digital assets. It also is touted to offer a diverse variety of tokens at the best princess across DeFi.

Known to provide bespoke software solutions for the Decentralized Finance markets, ConsenSys, has established its foothold as the leading Ethereum Software company. 

metamask

Let’s explore it in detail.

MetaMask Swap: Best Features

  • The new token swaps feature will fetch quotes across several decentralized liquidity sources so that the users can get what they want at the best possible price.
  • Earlier MetaMask navigation was complex and tricky. The user had to go through many decentralized exchanges or aggregators which offer a different set of tokens at different prices. In addition, every token had to be approved for trading adding to the woes. But the new token swap feature offers a platform that has an intuitively integrated user experience and streamlines all available liquidity.
  • The novel platform also aims to bring in greater transparency and efficiency resulting in a  better network experience. 
  • The feature will be initially available to users of the MetaMask extension on the Firefox browser. The concern plans to come up with versions for other browsers as well as MetaMask Mobile.

Benefits of using MetaMask Swap

Token Swap has several benefits in the offering because it has taken into account everything that worked against MetaMask in the past. Some of the most discernible benefits are:

MetaMask Swap Offers more liquidity mining

Every aggregator will interact with different liquidity sources that hold a certain amount of liquidity. By getting orders from many aggregators like Uniswap, Airswap, 1inch.exchange, Kyber, and the likes it will have access to the maximum liquidity across the DeFi ecosystem.

Best prices and tokens

Decentralized Exchange aggregators in the sector employ different trading strategies. This explains why the assets are priced differently. 

But the users of the MetaMask wallet under the new feature can request prices from all the available aggregators and individual market makers. MetaMask will then ensure that every user gets what they want – the best prices across DeFi. Getting orders from different aggregators also ensures that MetaMask user is able to access all the top available tokens in DeFi. 

MetaMask Swap has a great User Experience

To ensure the user doesn’t drive away user-experience is the key. Earlier the entire wallet system was a conundrum of confusion and excessive complexity. But, MetaMask has understood that this could be a problem for them as it could drive away users. Hence it has streamlined its approval process so much so that the users will now be able to access liquidity directly from the MetaMask User Interface. Previously they were required to navigate each DEX separately but this is a more combined and integrated approach that will simplify the entire process. 

MetaMask Swap has Lower Gas Fees

Every single DeFi aggregator pushes to its etched out path to get the best trade. Every route it chooses has a different gas fee to ensure the transaction takes place. MetaMask through its token swap feature will get the best prices for the user. It also will get them the best aggregator which is most gas-efficient for a trade-in question.

MetaMask Swap has Fewer approvals

Earlier the users had to get the due approval for every token on multiple aggregators. This means that several user interfaces for every approval process but with MetaMask’s token swap users need to take approval only once. This directly converts into reduced gas costs and a much lighter approval process. 

MetaMask has registered impressive growth figures. Just a few days ago, the noted platform surpassed the figure of a million active users of the wallet services. 

With the token swap, MetaMask has excelled itself by removing several issues that barred the user from a good experience. By provisioning an optimized trade path, it has reduced complexities leading to better DeFi adoption. 

DeFiRev.com is #1 in DeFi News. Check back in soon to find out the latest in DeFi News.


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Blue Kirby, why is the crypto media silent? Decoding Blue Kirby’s exit (scam) from Twitter space

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blue kirby

Blue Kirby, the biggest and the most aggressive promoter of Yearn. Finance has disappeared from the Crypto Twitter space.

biz/ - 19 days until Cover Crypto Insurance is released - Business &  Finance - 4chan



It is reported that the real identity of Blue Kirby, who allegedly stole millions, exit scammed. He also ran this site:  https://gumroad.com/guap

Regarding the disappearance of Blue Kirby, where is the investigative journalism? Does the DeFi community not want justice? Are we simply saying this is ok?

It also seems he wasn’t very careful in that he allegedly charged $2500 per person for his secret insider information group, where people paid him via venmo, thus leaving proof to his identity.

Within the group,the real person behind the blue kirby pseudonym allegedly leaked insider information about YFI.  

blue kirby identity


So the DeFi space was literally blown away when SushiSwap, assumingly performing magically, suddenly faced an event. Chef Nomi, the anonymous creator of the SushiSwap ecosystem resigned triggering a huge panic among the investors leading the major price drop. The burning question now is whether the latest update on the Blue Kirby also is a suspicious move and should the investors now short YFI. 

Three days ago on October 11th, many crypto followers and users had noticed that Blue Kirby, considered as the anonymous legend of the Yearn.Finance community has suddenly deleted their account from Twitter. The worst part of it all is that the disappearance happened without any prior warning and out of the blue. 

Australian crypto evangelist Alex Saunders through his twitter account said that he finds it difficult to believe what happened to $YFI. He draws a parallel with Chef Nomi’s case and how badly it hurt the DeFi at that juncture. 

OFF_BLUE is the only project which is left of Blue Kirby in the truest sense. What really remains active is an Ethereum contract since October 8th and a Twitter account with 3.3K followers and protected tweets. According to experts, it will also address the disruptive segment of Non-fungible tokens.

Eminence rage, a reason for its distancing?

Blue Kirby was successful in creating his/her online persona in the early summer months. This was done by riding on the back of Andre Cronje’s crypto hedge fund Yearn. The $YFI cheerleader rose to the ranks of the DeFi Community members on Twitter especially after the community allocation of $7000 per month was done for the tireless promotion of YFI token.

But Blue Kirby’s lapse of judgment came into light especially this late September with the sloppy and bungled release of Cronje’s Eminence. And now after Blue Kirby decides to resign and disappear into nothingness, it has followed a major explosion of the EMN protocol which is based on Yearn’s open-source code. Just 2 weeks ago a wrongdoer and a miscreant planning led to the draining of $15 million in EMN liquidity due to design flaws. 

The entire occurrence of disappearance could also be because Blue Kirby started getting all kinds of threats. Undoubtedly the promoter was aggressively pushing the EMN protocol since its launch, but after the hack, the popularity slowly degenerated and converted into disappointment. The moment it received a lot of fire from the community and crypto degens alike Blue Kirby distanced itself from every activity related to Yearn.Finance. In Fact it has taken the distancing very seriously by leaving yield farming telegram groups.

What Blue Kirby meant for Yearn.Finance

Blue Kirby has been the most passionate and aggressive promoter of Yearn. Finance. Right after YFI skyrocketed achieving the fastest 100x, a major rally in the crypto industry ever, there was a proposal submitted by the project contributors to pay Blue Kirby a compensation of $7000 USD every month as it had contributed majorly to its popularity.

But it also came into notice that DeFi community members have alleged that Blue Kirby had unfairly exercised influence over the Yearn ecosystem. It was further alleged that it had conducted a questionable Initial Coin Offering (ICO)for a non-fungible token (NFT) marketplace called Off-Blue.

The DeFi summer fiascos go on to show how permissionless technology,  pseudonymous identities, and borderless marketplaces can be an inflammable mix. Without interests at stake, Blue Kirby had very little incentive to act in the long-term interest of the community members as per the opinion of the crypto industry members.

Response from Andre Cronje

Also doing the rounds is the resignation of Andre Cronje who created Yearn.Finance. But he has made it clear that he will stay out of crypto Twitter.

“Still here. Still building. Nothing has changed.”

Since Blue Kirby’s exit, the price of $YFI has dropped significantly.As of now, the price of YFI is $14,337 USD.

DeFiRev.com is #1 in DeFi News. Check back in soon to find out the latest in DeFi News.


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Aave Crypto, DeFi asset secures institutional suitors

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Aave brings DeFi to Institutions, raises $25 million from investors

DeFi is a world where everything is so dynamic and technologically savvy because it is one sector that is growing with change. Several platforms have come ahead, collaborated, and funded to bring new projects to the fore or lubricate the functioning of present projects to bring DeFi to the remotest corners of the world. 

Aave has been a prominent DeFi player ever since its inception. By following the truest forms of decentralization measures, it is migrating to a new governance token AAVE. But bigger than that, the noted decentralized lending and borrowing protocol announced a $25 million investment from Blockchain Capital,  Standard Crypto, and Blockchain.com ventures, among others.

CEO Stani Kulechov said that if new stakeholders are added, they will participate in the protocol’s governance and staking. He further added:

“Aave raised funds from strategic investors to bring DeFi closer to institutional use and to expand the team size to serve the growth in Asian markets.” 

Aave allows its depositors to earn interest by providing liquidity to lending pools. In such a case, users can borrow cryptocurrencies with even little collateral. In terms of the total value looked at, Aave is the third-largest with a TVL of $1.3 billion in assets staked on the protocol. The present funding that is being raised will present supplementary funding of the earlier $24 million that was raised through three token sales since 2017.

Traversing from LEND to AAVE

Earlier this month Aave started taking measures to gradually upgrade its LEND token to an all-new and a much more robust and powerful AAVE token. This confers voting as well as staking rights which will allow the community to have a far-reaching opinion that will matter in the overall decision-making. This is what decentralization in its truest forms will mean and Aave has a name for it also – ‘Aavenomics’.

Kulechov explained, “Aave is now moving towards the AaveDAO, which means that after the migration from LEND to AAVE, anyone can build new functionality into the protocol along with the Aave team, effectively decentralizing development and governance.”

The upgrade is also known as Aave V2 is a bag full of promises and surprises. It will host several new features and functionalities like debt tokenization, native credit delegation, fixed-rate deposits, and gas optimization. As per the latest information, the transfer rate is 100 LEND per 1AAVE with the new token having a market capitalization close to $637 Million. The AAVE holders will have the right to vote on the protocol and its policies with a new process called Aave Investment proposals or AIPs where the protocol changes can be submitted. 

Gemini lists AAVE first

Last week also was news for the new token AAVE. Gemini, the cryptocurrency exchange co-founded by the Winklevoss brothers, became the first cryptocurrency exchange to list AAVE and also allow custody of its token. 

aave crypto

The listing was first announced by Tyler Winkelvoss and was then shared by Aave’s CEO on Twitter. The CEO noted that Gemini has become the first exchange to list AAVE as well as allow custody. Each AAVE token is worth 100 LEND tokens, with the maximum supply of AAVE being 16 million units. As of now, a total of 13 million AAVE tokens have been distributed to LEND holders, and the rest remains as part of the Aave Ecosystem Reserve.

Aave’s flash loans are stated to give users access to tens of millions in capital for a small fee yet for a few seconds only. These flash loans have proven to be the cash cow for the protocol making it the most popular products in its kitty. The team had also announced that $500 million in flash loans had already been issued in 9 months since it was launched. This announcement was made in September. 

AAVE’s new price today is $50.83 with a 24-hour trading volume of $556,222. In the last 24 hours, AAVE price is showing up by 2%. The slight increase could be the news of the new funding injection into the protocol and the growth associated with it. Its current circulating supply is 5.5 million coins with a maximum supply of 16 million coins. 

aave crypto

Source: CoinGecko

With DeFi very much grabbing headlines this summer, investors are looking to grab maximum stakes in promising projects like Aave. 

DeFiRev.com is #1 in DeFi News. Check back in soon to find out the latest in DeFi News.


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