# Yield Aggregator

![](/files/-MbzdthyI4y5Fhm8Qdkz)

## **Yield Farming**

Anybody that has been in Decentralized Finance (DeFi) long enough has heard about yield farming. At its core, yield farming is the practice of using DeFi protocols to make your money work for you. Instead of having funds stashed in a zero-interest account or a hardware wallet hidden under your mattress, you can use them to lend, borrow, trade, or provide liquidity. DeFi platforms incentivize user participation by rewarding them with native tokens and/or a portion of the transaction fees.

## **Yield Farming Strategies**

Yield farming strategies are in constant flux as farmers must continuously adapt to protocol changes, market demands, and gas prices. That being said, the primary goal is to earn the highest rewards by locking up your funds. This is accomplished by supporting Automated Market Makers (AMMs) through addition of funds to Liquidity Pools (LPs).

When liquidity is added you receive LP tokens that represent the amount of your contribution to the pool. The LP tokens can entitle you to a portion of the swap fees from that pool, but you can also stake the LP tokens in different farms to earn rewards. The staking rewards come in the form of a new token, (e.g. PancakeSwap rewards LP token stakers with CAKE tokens and SolarBeam with SOLAR tokens) that can also be swapped or staked in different farms and pools. The complexity of strategies increases quickly with all the different options and varying returns available.

## **Yield Farming Optimization**

Keeping up with the fluctuating rates and ever-changing market conditions takes a lot of time and energy. If you make a mistake or miss the optimal compounding times, your APY drops significantly. If you farm on Ethereum, you also must worry about the crazy high gas fees eating into your yields with every transaction. Ethereum yield farming has become a space where only whales turn a profit.

Dot.Finance helps farmers avoid these issues and earn the highest returns possible with our yield aggregator. By working on Moonriver and Binance Smart Chain (BSC), the transactions are fast, and the gas fees remain low. Our smart contracts automatically compound your returns at the optimal frequency to increase your APY and the already low fees are shared across farms by batching the auto-compound transactions. We give farmers automation and compounding at scale. It’s like farming with a tractor instead of pulling a yoke on your shoulders.<br>


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