How to MAX OUT Profits w/ $COMP & DeFi Yield Farming!

by birtanpublished on August 25, 2020

egg-yolk what is going on with my people the Chico army and if you're new around these parts a viewer of the tube my name is Tyler the host of the crypto channel and knows when you get famous you can't just become a total creep unlike Chris

D'Elia but hold on a second how did it come out like how did they the boy's mother ended up finding it finding it what do you mean it he's an upshot goes away right how they he probably saved it you can screen record take screenshots

you know how we don't snap DPS it's time for Chico crypto so the new way to make those gains in the crypto markets I'm sure you have heard about it seeing some of the memes on the crypto subreddit or

On crypto Twitter what am I talking about yield farming to maximize your crypto ROI now one of the most popular memes is this one which does a good job of explaining yield farming crypto you have

The virgin trader versus the Chad yield farmer virgin trader does single swaps looks for moon coins uses centralized exchanges and visor exchange tokens while watching charts all day in trading BTC slash USD while the Chad yield

Farmer is looking for healthy APRs does multiple token swaps in a single transaction uses Dex's earns governance tokens plants tokens and farms with WBT see we ain't using tether here on Chico so basically a yield farmer is someone

Who is knowledgeable about defy you have to be to understand Dex's token swaps collateral gaps and more and they use that knowledge to turn D fight into a return on investment maximizing machine so I'm not going to

Recommend to any of you to try and dive into the world of yield farming if you are a newbie you should learn about all of the defy LEGOs first which my channel has a ton of content on stable coins Dex's token sets and more I have made a

Defy playlist going through all of my old videos for you guys so check out that playlist first read from other sources and understand before trying to become a Chad so first things first compound we have to talk about their new

Token and the model as they were the spark which kicked off this yield farming craze compound over the past five days has been moving up down and all around peaking above three hundred and seventy dollars per for some time

And putting its market cap above 1 billion but since it has come back down touching 230 before bouncing back and pushing back up to 260 now the market cap is around six hundred and thirty million now I know the coin base Pro

Listing all that has to do something with this pump but compounds token governance and issuance is something special and that kicked off the craze in the space pushing compound to the number one defy

Protocol on d5 poults dethroning maker so we have to understand it out of the 10 million created comp tokens nearly 4.3 million of them are reserved for something called liquidity mining so kind of like how bitcoins are mined and

New coins are created compound will be issuing new comp tokens to those who contribute liquidity to the protocol right now about 3000 comp tokens are issued every day at a rate of about 0.5 comp per aetherium block the mission and

Reward is still at about 5050 to each functional pool of compound the supplier pool and the borrower pool the mission will go on for about the next 4 years so right now there is a massive incentive to use compound to supply and

Borrow of which you earn comp governance tokens for which are still in price discovery mode why do you think the total value and compound went ballistic over 6 xìng in the span of a few days and then going to compounds website we

Can see out of this value locked up it's split between a supply and borrow pool of which the supply side is much larger than the borrow side with many more individual suppliers and borrowers over 7 times more suppliers than borrowers

Actually now remember compounds comp tokens reward is split 50-50 between the two sides thus borrowing on compound you have the ability to get a much higher percentage of the liquidity mining rewards split between over 26,000 people

Or split between just over 3500 I would take the ladder on the borrow side which I have been doing but today we're gonna do the supply side so let's get into it what we can do with the Chicot version of yield farming a very basic one well

We want to earn those sweet compound tokens and to do this you can't just supply our borrow tokens that aren't being used much in the protocol if you want to receive a bulk of the rewards you have to be in the hot tokens so

Going to compound stats we can see the highest percentages on both the supply and borrow AP wise they are basic attention token CRX and wrap Bitcoin these are where the higher percentages of

Comp tokens are being paid out so our first step in Neil farming will it be to start at compound nope we go to the defy Lego container and pick out the best piece for ROI which we can see from defy rate which puts together all the

Protocols and their supply and borrow AP Y's together in one place a v' we can borrow w BTC for just seven point one eight percent then changing to supply AP wise we can see that there is sixteen point nine nine percent a py for lending

It on compounds hmm so let's do it let's borrow w bt see from a v' to borrow an aid you need to put down some collateral and the collateral we want to put down as something that is getting a healthy a py on that platform and it stays stable

We will choose die as it's getting a great three point eight four percent a py we're just going to do a small amount for example just over eighty to die and once deposited into eighth you need to make sure that the collateral slider is

Slid over to green the next step is to go to the borrow section and here's a pure example of how crazy these yield farming protocols are so i was preparing this video and the script and i was able to get my stable APR with a by borrowing

W BTC at eleven point nine eight percent stable APR the transaction and literally right after I submitted the APR emp'd both variable and stable as we can see stable jump from that eleven point nine eight percent up to thirty eight point

One four percent and variable jump from the seven point one eight percent to twenty eight point nine four percent now when I submitted my transaction had a choice a variable or stable I knew this crazy stuff was going to happen so I

Went with the stable one even though the rate was higher nearly four percent than variable but if I chose a variable one my low rate of eleven point nine eight percent would not have been locked and I would have jumped with the variable rate

Jumping crew timing so we have borrowed WBT see on a I put down eighty two dollars and died and was able to get as we can see point zero zero six three four W BTC with a locked in borrow rate of eleven point nine eight percent now

It's time to go lend that WBT see where we can get the best returns and defy rate told us that was compound right now so let's go there as we can see our borrowed w BTC is there the Ray has dipped a bit to sixteen point three

Three percent but that is still above our borrow of eleven point nine eight percent on aive so let's click on it and first we need to enable I'll do that once confirmed we need to supply and we'll do that by clicking on max and it

Puts our whole balance up for supply which I want to do then clicking supply we need to wait for the transaction to confirm and once confirmed it will just take you back to the home screen we can just go back to the dashboard to see our

Supply balance with our wrap Bitcoin the point zero zero six three earning sixteen point three three percent APY and we are also earning compound tokens and there is a great tool out there to see how much you earn for supplying I'm

Borrowing on compound from predictions exchange which I left a link for in the description below but if we put in our point zero zero six we must round down with this and then enter calculate we can see how much we could earn from that

Point zero zero six of a W BTC over a year you would earn point zero seven comp and nine dollars and forty three cents an interest at the current rates which is a net APY of fifty two point one two percent of course that is just

For a small amount of W BTC but what if we had supplied them an entire one a hold W BTC that comp it jumps up massively the interest earned jumped up massively and APY jumps up but remember we also used I we supplied that to

Borrow W BDC on a and we are earning interest from that supply so it's doing the video it has dropped to three point seven two percent but that is okay we can see the balance growth in real time on the a platform but remember we are

Also barring the WB TC at a rate of eleven point nine eight percent so you could actually take what we're earning from the die three point seven two percent and minus that from your borrow and we are actually borrowing the WB TC

At eight point two six percent and then lending on compound at sixteen point three three percent APY making about eight percent but the rate dips on compound and goes below eight point two six percent level I need

To get out because this farming technique wouldn't make any sense which you can do at any time on all of the platforms you are in control of your loans your collateral there is not a way you can do

It in an instance you get why they call this yield farming now things rapidly change and you have to be on the ball I'm sure today the rates are much different all around that is just a high level look and I want to provide the

Chico army the best content possible so let's go deeper but I'm not going to do it so you have to know about instant yappa very powerful and since compounds launched surging defy tool they have their own compound finance section which

Includes maximizing your compound position by folding 4x which I could explain but another great youtuber defy dad has already covered thoroughly on what to do that videos in the description too if you want to check it

Out so the complexities of yield farming go beyond just what we have talked about chain link got on Twitter put out this tweet you defy yield farming is addictive deposit link to Ava's collateral to borrow W BTC deposit W BTC

To curb finance receive curve rent WS BTC liquidity pool token which is 36% Ren BTC 25% W BTC and 39% s BTC stake pool token on synthetic IO and thus he is farming synthetics Ren balanced and curve finances token Wow Wow we was all

Chico has to say now this isn't a free lunch you have to be knowledgeable you have to research and you have to take risks each and every single one of these d apps and protocols have risks associated since most are run with the

Solidity language and thus they are turn complete and have attack vectors that is why like everything in crypto you never risk more than you can afford to lose and that goes with yield farming but the question this all comes down to is are

You a Chad or are you a chode Cheers I'll see you next time

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