YieldFarming

What is DeFi 2.0 and how yield farming is going to change

In this video, I cover the three projects reinventing liquidity mining and I share my thoughts on the future of yield farming. I also announce my new role at Ondo Finance!

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Resources:
The Defiant article on DeFi 2.0: https://thedefiant.io/olympusdao-uniswap-defi-2-0-liquidity-mining/
Nansen analysis of yield farming: https://www.nansen.ai/research/all-hail-masterchef-analysing-yield-farming-activity
Compound farming analysis: https://twitter.com/alex_kroeger/status/1460053068460924930
Uniswap liquidity mining analysis: https://medium.com/blockchain-capital-blog/uniswap-liquidity-mining-analysis-8a14be698eb0
Ondo + Fei Liquidity-as-a-Service announcement: https://medium.com/fei-protocol/if-you-are-part-of-a-dao-or-protocol-that-wants-to-create-liquidity-for-your-token-without-f49a01f02863
Olympus Pro: https://pro.olympusdao.finance/
Tokemak: https://www.tokemak.xyz/
Ondo Finance: https://ondo.finance/

Timestamps:
00:00 Intro
00:11 What is DeFi 2.0?
00:23 Liquidity incentives are not productive for most projects
01:48 Yield farmers have historically been parasitic
03:12 The three projects solving the liquidity problem
03:28 How Olympus Pro works
04:29 Why Olympus Pro isn’t a perfect solution
05:18 How Tokemak works
06:10 Why Tokemak isn’t a perfect solution either
07:05 I’m joining the Ondo Finance team!
07:21 How Ondo Finance works
08:36 How Ondo’s Liquidity-as-a-Service offering works
10:19 Conclusion

Source

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38 Comments

  1. Impermanent loss turns me off the the point that I only farm stablecoin LP’s

  2. Once people get their heads around how Tokemak is creating a black hole for liquidity, it’s going to blow up!

  3. please we need options that aren’t on Ethereum! gas means it’s impossible to use.

  4. Given your personal involvement with Ondo finance, this video on comparison of protocols feels like a sort of “sponsored post”. In the interest of transparency, I thought this video and your previous videos on ohm , tokemak and ondo protocol ought to clearly state your vested interest in ondo so readers can form their own judgment.

  5. Well, I don’t like that FEI is eating up a perfectly good opportunity for the average user to earn fixed yield on their stables – in stables. There are enough opportunities for degens in crypto, you don’t need to maximize their returns! :P

  6. You sold out. I think you would have had more impact as YTer than working for a protocol.

  7. Congrats on joining Ondo! So I assume that means that all Ondo upcoming vaults will use fei as the fixed asset right? Hope it gets on more centralized exchanges then, since their withdrawal costs are generally lower than eth tx costs and will add alot more liquidity to keep peg since traders can arb it with less slippage/tx costs. increased exposure is also a plus since alot of people who just trade on CEXs will try to figure out what is the use case of fei and stumble across defi I think.

  8. For long term liquidity, Olympus pro seems like the best solution. Ondo as far as I can tell is just liquidity mining with extra steps, and to minimise impermanent loss. At the end of the vault period, the protocol does not own its own liquidity, everything is given back and then end user can still dump. Although it could be useful for a new protocol starting out that doesn’t want to raise large capital for LP pairs

  9. Ondo doesn’t seem to be the best solution and here is why:
    On the fixed side if the APR is offered too low it won’t be able to attract liquidity at the first place; but the APR cannot be set too high either because that swap fees may not be able to pay off the APR and hence damage the reward on the variable side

  10. With those bonds mechanisms, I’m wondering what premium will OHM partners get on their inflation rate . Nice video thanks

  11. You are not thinking about why these projects work for the end user, think about a strategy with these models that work and you will find why they exist.

  12. Hey man people keeping kicking me out of your discord. I just don’t get it, I think I pissed one or two there but it wasn’t my intention.

  13. Yea I was paying attention until you said your apart of the Ondo team. I’ll add Ondo as something to research though.

  14. So far I think your channel has the most well explained DeFI content thank you

  15. I got banned for posting about a legitimate crypto project with no warning. Thanks