Yield Farming Yield Farming is a method for maximizing the rate of return on initial capital investment (capital investment) by using different DeFi protocols. A yield farmer will attempt to optimize their production by experimenting with a variety of techniques. A successful method usually employs the fewest DeFi protocols, such as Compound, Synthetix, or Curve, as opposed to more complex approaches. When a technique no longer produces a good yield, farmers may move their money across protocols or exchange coins for other methods that generate a higher yield. In order to make yield farming more understandable, it would be helpful to relate it to traditional finance. Consider the following scenario: an investor is looking for a new savings account with the highest annual percentage return. She would analyze the accounts and decide which would provide her with the best overall return on her investment across various categories. The returns of different yield farming techniques may all be expressed in the same way, using the same mathematical formula. While many savings accounts provide just 0.1 percent annual percentage yield (APY), yield farming may offer rates as high as 100 percent APY, which is a significant increase over conventional financial techniques.