Frequently Asked Questions
What is DeFi yield farming?
DeFi yield farming is depositing crypto assets into decentralized protocols to earn returns from trading fees, lending interest, or liquidity mining rewards. APYs range from 1-2% for conservative staking to 50%+ for riskier pools.
What is impermanent loss?
Impermanent loss occurs when providing liquidity to an AMM pool. If token prices diverge from your entry, you end up with less value than holding. A 2x price change causes ~5.7% IL. Stablecoin-only pools have near-zero IL risk.
How often does this data update?
Live APY data refreshes every 4 hours from DeFi Llama, which aggregates data directly from blockchain protocols. The timestamp at the top shows the last update time.
What is the safest DeFi yield strategy?
ETH liquid staking via Lido or Rocket Pool (2-4% APY, no IL risk), stablecoin lending on Aave/Compound (3-8% APY), and stablecoin LP pools on Curve (2-5% APY with minimal IL).