Yield Aggregator, Optimizer & Maximizer — Yield Parrot Academy Ch. №2 “What is Yield Farming?”
Let’s learn about Yield Farming and its benefits, the different strategies to increase APY, how auto-compounding works, and much more!
There are multiple alternatives within the DeFi ecosystem. Today we are bringing some valuable information about one of the most popular trends in the last months, Yield Farming.
What is Yield Farming?
Yield farming is a way to earn more crypto with your crypto. This means locking up cryptocurrencies and getting rewards. It involves you lending your funds to others and in return for your service, you earn rewards in the form of crypto. This happens through computer programs called smart contracts.
Using data analysis and optimization techniques, yield farms can maximize performance and revenue. Yield Farming takes advantage of the magic of auto-compounding to boost the APYs, and on top of that, develops efficient algorithmic tactics and financial strategies leading to extraordinary profits.
Aggregator, optimizer & Maximizer — Explained
Optimizer: Optimizing means a farm means using data analysis and optimization techniques to maximize performance and obtain high APYs. This is achieved by auto-compounding, which will transform APR into APY.
The farm will automatically take the profits earned and stake them again in the vault, making the staked amount higher and increasing the APY!
Aggregator: In order to improve strategies to the maximum, a farm can lead to another farm to aggregate another token into the circuit. This means that on top of earning the token from the original farm, we add our native token, boosting the APY even more!
Example:
- Original farm → Stake Cake & Earn Cake (At Pancake Swap)
- Aggregator farm → Stake Cake & Earn Cake + Lory (At Yield Parrot)
Maximizer: A Maximizer vault contract leads to another farm that adds its own token as part of rewards, and this second farm leads to the original farm that rewards the original token. This way you can earn the tokens rewarded from 3 different farms by staking in only one! 🤯
Example:
- Original farm → Stake Cake & Earn Cake (At Pancake Swap)
- Intermediary farm → Stake Cake & Earn Cake + Mobox (At Mobox)
- Maximizer farm → Stake Cake & Earn Cake + Mobox + Lory (At Yield Parrot)
The Maximizer contract will automatically sell the tokens rewarded in the intermediary farm and buy the original farm token, so you will only see this extra earning in a higher APY and not another token earned.
What are the benefits of Yield Farming
Buying cryptocurrencies and holding them, looking for them to increase their price over time is a good choice and can make you earn big profits. But there is a more efficient alternative to add some extra earning while you hold those tokens, you can stake them in farms
✅ Earn more tokens by staking them into farms.
✅ Earn more of the same token & also new tokens staking them into Yield Aggregator farm.
✅ Boost your profits with auto-compounding strategies.
✅ Achieve extraordinary rewards with Yield Maximizers farms.
Why choose Yield Parrot?
At Yield Parrot, the smart contracts are specially designed to take advantage of every opportunity in order to maximize profits. Using data analysis and financial strategies we have developed highly efficient algorithms and tactics that lead to higher returns.
In addition, it is a highly secure platform for its users. We know that security is a key attribute for our users, that is why we make sure that everything works perfectly and that no security vulnerability can occur.
Last but not least, we know that not all of our users are full-time traders, that is why we build fully automated processes so that you can enjoy peace of mind while Yield Parrot executes all the processes automatically and ensures the highest profits.
Stay tuned and hear all the news about Yield Parrot 🦜🚀
- Twitter: https://twitter.com/Yield_Parrot
- Website: https://yieldparrot.finance/
- Telegram: https://t.me/yieldparrot
- Telegram announcements: https://t.me/yieldparrotannouncments
- Docs: https://yieldparrotfinance.gitbook.io/docs/
