Decentralized Finance (DeFI) exploded in June as Compound token gained more than 500% in just three days (then lost over 55% in the next two weeks), followed by Balancer token gain of more than 230% in less than a day (which then also lost almost 60% in the next two weeks).

One month ago, almost nobody knew about yield farming*, but today it is the hottest topic in crypto. New yield farming opportunities are emerging almost daily, and even some existing crypto projects are joining the party. The following question comes to our mind:

Are we really building the new, decentralized monetary system which will disintermediate the greedy banksters, or are we just following their footsteps?

The new term in crypto is "Yield Farming", a shorthand for clever strategies where putting crypto temporarily at the disposal on platforms to earn a high rate of return.

MVIS CryptoCompare Digital Assets 25 Index

Source: MV Index Solution. Data as of 06/30/2020

About the Author:

Timotej Bodlaj is a portfolio manager at Solidum Capital ( and a member of its Investment Committee. He has an extensive technological background in blockchain and finance. He holds a Master’s degree from Rome Business School, as well as Oxford Blockchain Strategy Certificate from Saïd Business School. In his free time, he likes to do outdoor sports, such as running and biking.

The article and link above are an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.