Xu, J;
Feng, Y;
(2022)
Reap the Harvest on Blockchain: A Survey of Yield Farming Protocols.
IEEE Transactions on Network and Service Management
10.1109/TNSM.2022.3222815.
(In press).
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Abstract
Yield farming represents an immensely popular asset management activity in defi. It involves supplying, borrowing, or staking crypto assets to earn an income in forms of transaction fees, interest, or participation rewards at different defi marketplaces. In this systematic survey, we present yield farming protocols as an aggregation-layer constituent of the wider defi ecosystem that interact with primitive-layer protocols such as dex and plf. We examine the yield farming mechanism by first studying the operations encoded in the yield farming smart contracts, and then performing stylized, parameterized simulations on various yield farming strategies. We conduct a thorough literature review on related work, and establish a framework for yield farming protocols that takes into account pool structure, accepted token types, and implemented strategies. Using our framework, we characterize major yield aggregators in the market including Yearn Finance, Beefy, and Badger DAO. Moreover, we discuss anecdotal attacks against yield aggregators and generalize a number of risks associated with yield farming.
| Type: | Article |
|---|---|
| Title: | Reap the Harvest on Blockchain: A Survey of Yield Farming Protocols |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1109/TNSM.2022.3222815 |
| Publisher version: | https://doi.org/10.1109/TNSM.2022.3222815 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher's terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > Dept of Computer Science |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10161659 |
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