Yield Farming — Opportunity and Risk

What you’ll learn

• •Yield farming actively moves crypto across multiple DeFi protocols, chasing the best available returns.
• •'Stacking' layers multiple yield-generating steps on the same capital, increasing both potential return and the number of things that must go right.
• •Very high advertised APYs are usually funded by inflationary token emissions, not sustainable underlying activity.
• •Yield farming compounds smart contract risk, impermanent loss, and reward-token value risk rather than just adding them up.
• •'Money legos' composability enables creative strategies but also makes a stacked position more fragile.
• •Always ask where an advertised yield actually comes from before treating it as a genuine opportunity.