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Yield Farming

Diagrams | Matrices | Thinkers

How to build a portfolio that optimizes potential for yield?

  • Staking vs Yield Farming.

Context

Yield Optimization

Resources

Staking

What percentage of a holding should be staked?

  • How does governance work?
  • What are the staking pools in the protocol?
  • What is the difference between pools?
  • What is variable locking?
  • How do I mine liquidity?
  • What happens when I vest my rewards?
  • How long should I wait before vesting?
  • What happens to tokens after they are unlocked?
  • What happens to vested tokens after they are unlocked?
  • What are distributions?

Swaap Finance

Questions

Which DeFi concept covered here is most commonly misunderstood by developers building on top of it — and what's the misconception that causes the most bugs?

  • At what level of DeFi sophistication does the conceptual understanding become less important than the practical experience of loss from getting it wrong?
  • How does the concept change in practice when implemented on a high-throughput chain versus Ethereum mainnet?
  • Which adjacent DeFi concept is most important to understand in combination with this one to reason about system behavior correctly?