Sanity and the Yield Farmer: How DeFiYield.app is Bringing Calm to Honest Workers
It’s funny how quickly yield farming can escalate.
One staked LP token here and a handful of liquidity mining there, and you start to find yourself getting increasingly familiar with the temperature of your device. A couple of protocols utilised for potential retroactive airdrops, some aped tokens, and one or three NFTs to spice up the look, may find you whistling Jefferson Airplane’s White Rabbit. By the time you get to staking more LP tokens to farm more of those tokens you’d aped into, while furtively scribbling down potential alphas you gleaned from trawling CT, sleep has become an abstract construct and your whiteboard will give most PhD holders a run for their money.
Then, another EVM compatible chain gets announced.
Time to repeat the circle.
I Heard You Like Yields in Your Yields…
Yield farming is to DeFi what fuel is to a rocket. It powers the entire ecosystem. The ability to put crypto-assets to work and earn interest and other rewards on these assets that could have been lying in some wallets has changed how the market approaches profit and risk management.
Buying low and selling high has now become one of the tools in the arsenal rather than the only tool that it used to be. Hedging risk during moments of volatility and uncertainty no longer means anxiously sitting on Tether and hoping the market doesn’t take off without you. Through yield farming, token holders are incentivized to stake their assets, either as single staking or liquidity pool token, for users to borrow or deepen the liquidity pool for trading asset pairs. In return, liquidity providers and stakers earn returns on their staked assets through annual percentage yields (APY) as high as five digits depending on how early they are.
Even with the extreme volatility the crypto industry has become infamous for, yield farming APYs tend to be in the triple digits (for tokens) and double digits (for stablecoins). However, it doesn’t take long before the nightmare starts and sanity takes a backseat in the quest for more yields. You know, like our good friend, Bob:
And just when you thought it was safe to blink again, you suddenly wake up and find yourself face-to-face with some fine rug merchants.
When in Rugistan…
In crypto, a rug pull is a type of scam where protocol developers act maliciously to exploit and steal users’ funds via smart contracts. This could be a soft rug where they either slowly dump their tokens or drain funds from the liquidity pool and users’ wallets; or a hard rug where they just up and vanish with everybody’s funds into the ether that begot them.
Rug pulls and smart contract exploits are the two, biggest threats facing yield farmers have to contend with — the former accounted for $2.8 billion in stolen funds last year, while the latter was responsible for $7 billion in lost funds.
Most of the exploits and attacks can be attributed to unaudited contracts and poorly implemented business logic. However, given the experimental nature of this nascent industry (yes, even at an eyepopping $234.57 TVL), security often will often take a backseat to opportunity cost and due diligence flies out the window.
This shouldn’t be so.
What if you could boil all these insanities down into an app that not only allows you to see and manage all the assets and farms in your wallet, but also allows you to seamlessly swap, provide liquidity, and most importantly evaluate smart contract risk without resorting to third-parties or be biologically related to Vitalik Buterin?
Sounds like a good start?
DeFiYield is a lightweight and single interface for managing and monitoring investments across different protocols and blockchains. Built by yield farming and security experts who have been developing the product since July 2020, DeFiYield simplifies and streamlines yield farming operations, giving users full control over their activities without having to resort to post-it notes and messy browser tabs.
Comprising of a suite of decentralised products designed to be intuitive and seamless, the platform caters to the needs of both veterans and newcomers in the space with the following features:
- A dashboard for a high-level view of assets and operations across all 16 supported blockchains with more being added.
Conversely, users can quickly see all supported chains by inputting defiyield.eth in the address bar
- A watchlist for monitoring those “whales”, dev team and protocol wallets
- A pools section for monitoring your LP position and exploring LP opportunities across major protocols
- An NFT section
- A scanner for scanning smart contracts for documented and known smart contract vulnerabilities
Tools for scanning your wallet for token approvals and revoking them.
- A calculator for calculating impermanent loss for liquidity pool providers
- And a tool for looking up and monitoring the timelocks on initial liquidity supplied by protocol teams.
DeFiYield also maintains a database of audits and exploited protocols for researchers and advanced users who prefer to get hands-on with their data.
A Token for DeFi
At the heart of every decentralized protocol is a token. DeFiYield is no different. Its native $DEFI token will power protocol governance, ownership, and utility. In our next article, we’ll be exploring the token utility and features.