In DeFi, yield farming is a process in which crypto assets are deployed into a protocol with the purpose of receiving yield for participating in the protocol.
Yield farming is very simple at the surface level but does involve some aspects of risk. For example, yield farming typically involves currency risk as there are high lock-up periods. If a currency generates a 15% APY but devalues by 20%, then this activity was not profitable. Fund lock-up can be detrimental as it prevents users from reacting to changing spot prices. Successful Yield Farming requires constant monitoring of the DeFi space to understand the advantages and disadvantages of each protocol, and the opportunities it offers.
Coinchange Yield Account takes all the complexity out of Yield Farming, drawing on our team's extensive DeFi experience and technical background to ensure that everyone has the opportunity to maximize returns on their capital. Our Earn account structure allows for us to pay out Earn on a daily basis and offer a no lock-up service.