Yield farming has become a major income stream for me.

I started with $10,000, and within six months, my portfolio grew to $100,000.

It’s not just about staking coins; there’s a process to it.

🧵👇 Here’s how I did it step-by-step.

Before we get started…

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Yield farming is one of the most accessible ways to earn passive income in DeFi. By locking up your assets in liquidity pools, you provide capital to decentralized exchanges, earning fees and token rewards in return. Here’s my strategy for maximizing yield while minimizing risk 👇

1/ Pick Stable Pools First

When you start, always focus on stablecoin liquidity pools.

I use @defillama and @zapper_fi to find high-yield pools that involve coins like $USDT, $USDC, or $DAI. These pools offer steady, low-risk returns (usually 5-20%) because they involve less volatility.

By allocating the majority of your capital here, you can earn consistent income without being exposed to sudden market dips.

2/ Move into High-Yield Pools with Caution

Once I’ve secured steady gains from stablecoins, I allocate a smaller portion (usually 30-40%) to high-APY pools.

I focus on altcoin pairs or innovative platforms like @PancakeSwap or @TraderJoe_xyz that offer higher returns, sometimes in the range of 50-100% APY.

But remember, these pools come with higher risk, so don’t put all your funds here.

Be cautious of pools offering yields above 300%, as they often involve tokens with volatile prices that can quickly wipe out your profits.

3/ Reinvest Your Earnings

The key to compounding yield farming profits is reinvesting your rewards.

Every few days, I harvest my earnings and either reinvest them in the same pool or move them to new, safer pools with stable returns.

Platforms like @beefyfinance automate this process, saving you time and maximizing returns through auto-compounding.

4/ Use Multiple Chains

I don’t just farm on Ethereum due to high gas fees. I diversify across blockchains like Binance Smart Chain, Avalanche, and Polygon, where fees are much lower, allowing me to farm efficiently without sacrificing my profits.

5/ Stay Informed

The DeFi space evolves fast, and yield farms can become outdated or exploited. I stay up-to-date with the latest developments by following trusted DeFi sources and auditing platforms regularly to make sure my capital is secure.

That’s a wrap!

Yield farming has been a game-changer for my portfolio, and I hope this guide helps you.

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