How Yield Farming Works

See how Coinchange can offer industry-best APY on crypto with minimal market risk.
How yield farming works

Step 1

You invest crypto with Coinchange

Start by transferring crypto or cash to your Coinchange Earn Account.
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Step 2

We allocate crypto to blockchain protocols

We use advanced data models and a robust risk-assessment process to find a diversified portfolio of low risk, high yield protocols across multiple blockchains.

Step 3

Protocols provide a market for trading

Your crypto makes Decentralized Finance possible by providing liquidity for DeFi users to buy, sell and swap crypto.
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Step 4

DeFi users pay fees

These fees are paid to the protocol automatically as part of the "Smart Contract" transaction. The more protocol activity, the more fees are generated.

Step 5

We collect and manage the fees

Protocols calculate the fee share based on the amount of liquidity being provided.  They pay it out in the form of reward tokens, which we can reinvest, trade or manage in other ways to increase returns.
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Step 6

You earn high yield!

We sell the reward token for your in-kind cryptocurrency and pay you the yield! The yield is automatically added to your Earn Account so you earn compounding  returns.

Automated reallocation
means superhuman yield

At the core of our product is our automated algorithm, which is a complex system that’s designed to tackle difficult issues and make profitable investment decisions so our users can earn competitive yields. The automated algorithm will maximize profit while using the list of yield-farming strategies available that our Intelligence and Quant teams have created.
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Coinchange utilizes a centralized, off-chain communication mechanism to interact with the smart contracts that run and power our supported DeFi protocols. This is made possible through our proxy smart contracts, which merge execution logic into one transaction, effectively lowering overall transaction fees and making them less prone to front-running.

Real-time portfolio evaluation
Off-chain communication mechanism
Optimized rebalancing
Proprietary node-parsing data collection
Risk-hedging through liquidity diversification
Economy of scale in transactions to reduce gas fees
Which is better?

Yield vs. Interest

Once we’ve identified the best protocols to work with, the yield generation process begins. DeFi users incur fees for engaging in transactional activity on the selected protocol - these fees are then distributed to protocol stakeholders for engaging with the protocol.
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As the fees continue to accrue from increased volume and usage on the protocol, Coinchange takes the revenue earned from fees and provides you with a consistent yield on a daily basis. This process continues as your interest starts to compound, meaning your portfolio is being supplied with a recurring source of passive income.
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Contrary to most of our competition, we provide passive income to users via DeFi protocol revenue. We don’t lend our users funds to institutions that will trade and make big financial plays, and we also don't use them algorithmically to generate yield. Fairness and transparency are the cornerstones of our business model.

Higher returns
Lower risk
More transparent

Protocols We Connect To

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PancakeSwap

PancakeSwap is a decentralized exchange (DEX), allowing investors to swap BEP-20 tokens.

Sam Kennedy

Marketing Lead, Twitter
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Ethereum

Ethereum is the community-run technology powering the cryptocurrency ether (ETH) and thousands of decentralized applications.

Sam Kennedy

Marketing Lead, Twitter
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AAVE

Aave is an Open Source and Non-Custodial protocol to earn yield on deposits and borrow assets.

Thomas Lee

Marketing Lead, Oculus
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Compound

Compound is a decentralized, blockchain-based protocol that allows you to lend and borrow crypto.

Thomas Lee

Marketing Lead, Oculus
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Compound

Compound is a decentralized, blockchain-based protocol that allows you to lend and borrow crypto.

Thomas Lee

Marketing Lead, Oculus

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How Yield Farming Works
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Note: Crypto assets are not legal tender, are not backed by the government, and crypto accounts held with Coinchange are not subject to FDIC or SIPC protections. The value of crypto assets are not static and can fluctuate substantially. Not all products and services are available in all geographic areas and are subject to Coinchange’s applicable terms and conditions. Eligibility for particular products and services is subject to final determination by Coinchange. Rates for our products are subject to change. Nothing on this website should be construed as a recommendation for any action.Coinchange is registered as a Money Services Business (MSB) number 31000185193236 with the US Financial Crimes Enforcement Network (FinCEN).