Blink once. Then twice. In that period (around one second), over a hundred thousand pieces of internet content were posted.
That means one hundred thousand people pressed “send,” “share,” “retweet,” and so on in an internet second.
This number keeps going up as market share for the Facebooks and Twitters of the world increase. Anyone trying to make any kind of dent in our world is going to make sure they get eyeballs on their product. Undoubtedly, the cryptocurrency world participates in this “eyeball economy.”
How to BUIDL: The Essence of Crypto Communities
Let’s consider two possible tokens. One token project has some relatively strong fundamentals. As a Silicon Valley startup, they acquired VC funding and hired a few quality devs to build their project.
With a stated goal is to “bring decentralization to the masses,” the genesis of their idea began during a lunchtime meeting at Google headquarters. Their marketing manager sometimes posts on the startup’s Twitter account during work hours. Sentiment is low and excitement just isn’t there.
A Legendary Startup Story
Now, let’s look at another token. This token‘s founder got his project started as a response to Blizzard releasing a balance patch that nerfed his beloved warlock. The founder allegedly cried himself to sleep and swore at the horrors of centralized services, hoping to one day bring decentralization to the masses.
His project raised money not through connections with Silicon Valley, but through the overall bitcoin and cryptocurrency community. He was not a bigwig at Google, but rather, a CS major at the University of Waterloo.
Marketing is not conducted by a CMO but an army of devotees that regularly flood Reddit, Twitter, and family dinners hoping to get more people interested in this token. Everyone who knows crypto is familiar with this particular project.
This man does not actually work at Deloitte. Source: Wikipedia.
It should be obvious that our second token, Ethereum, has made a much larger impact in making decentralization part of our way of life compared to the unnamed Silicon Valley token.
What if there was a token that took Ethereum’s approach to community building and took it a step further? What if the devs of that token understood that crypto as a whole is a ragtag group of developers, technologists, Twitter trolls, and Telegram FOMOers who are banding together to bring forth a decentralized future?
DeFining the Future with Yield Farming
It sounds crazy, but as anyone in the token community can tell you, crypto is crazy. I asked you to blink earlier. Do it again — blink twice. In a similarly short amount of time, meme tokens have taken over the crypto world using the power of virality and a magical way to stake and earn tokens called yield farming. Usually, staking tokens involve holding a particular token and earning its sister pair.
With the advent of DeFi coins, however, we now have yield farming. Users are theoretically able to stake any token on the Ethereum network and earn any other coin, provided that coin developers have developed staking pairs for those coins.
We will now discuss the basics of yield farming. Of course, none of what we talk about ahead constitutes as financial advice. Rather, consider this a how-to guide, a “Yield Farming for Noobs”.
Some of the yield farming techniques are as follows. Every website has a different UI and method of staking. You might see some crazy APYs! Use your best judgement.
Source: Jiaozi.farm. When we say crazy APYs, we mean it.
- COMP Farming: Users may borrow or supply assets on Compound, earning a proportional amount of COMP in return
- If you are looking at the many popular food tokens, it is likely that you’ll need to stake a 1:1 Uniswap liquidity pool. Some of the many food meme tokens include chicken tenders tokens (TENDIES), Chinese dumpling tokens (Jiaozi), and of course, the ever-popular yet ever-controversial sushi token (SUSHI). As the ETH network has become quite clogged, you might be looking at paying some pretty hefty fees to even start staking in the first place.
- Use BAL farming through Balancer to access flexible pools outside of the usual 1:1 Uniswap pools. For example, you might find 80-20 or 95-5 pools on Balancer, where you can put up a more palatable ratio of Token A-Token B.
Betting the Farm on Yield Farming
From there, you should be able to stake and farm particular tokens to your heart’s content.
There are many DeFi risks, of course. You could run into smart contract bugs, liquidity crunch, or governance compromises. Try it out, but don’t bet the farm (heh) on it. This isn’t even considering the massive gas fees you might have to pay. Thankfully, yield farming looks like it’s here to stay.
Newer, less risky methods will get developed and we’ll start seeing more contract audits. Enjoy the ride, degens.