Yield farming can generate attractive returns on your crypto. This guide covers safe strategies for beginners.
What is Yield Farming?
Yield farming is the practice of putting crypto assets to work to generate returns through DeFi protocols—lending, providing liquidity, or staking.
Beginner-Friendly Strategies
- Stablecoin Lending: Deposit USDC on Aave for 2-5% APY
- Stablecoin LPs: Provide liquidity to Curve 3pool for 3-8% APY
- ETH Staking: Stake ETH for ~4% APY through Lido
Risk Tiers
- Low Risk (2-5% APY): Stablecoin lending on Aave/Compound
- Medium Risk (5-15% APY): Blue-chip LP positions
- High Risk (15%+ APY): New protocols, leveraged positions