Yield farming. Follow the value.

Ask who pays before asking how much

A reward can come from borrower interest, trading activity, network participation, or token distribution. Name the activity and explain the path from that activity to the holder. A combined percentage can conceal several sources that behave differently.

Separate recurring revenue from temporary incentives in a worksheet. Evaluate an example with and without the incentive, and keep the reward asset’s price assumption visible. These are sensitivity tests, not forecasts of an actual strategy.

Make the compounding model explicit

APR and APY are useful only when their methodology is understood. Identify the asset unit, observation period, reinvestment frequency, and fees already included. Do not compare a historical annualized estimate with a fixed-rate mathematical example as though they were the same type of observation.

The full guide below works through simple interest, compounding, price changes, and an all-in cost example. Change one input at a time to see which assumptions drive the result. A higher token balance can coexist with a lower reference-currency value.

Automation does not remove dependencies

A vault may coordinate actions and allocations, but the underlying activities still need review. Yearn’s risk documentation explains the importance of the protocols used by vault strategies. Identify those protocols rather than stopping at the vault interface.

Check who can change allocations, which charges are included in displayed performance, and how a withdrawal is processed. A convenient workflow is different from a guaranteed economic outcome. Do not treat an automated strategy as an insured savings account.

Include the whole route in the result

Record entry costs, recurring actions, rewards, final asset quantities, conversions, and exit charges. Use a consistent benchmark and denominator. If deposits or withdrawals occur at different times, select an accounting method that handles their timing rather than hiding them inside a simple percentage.

Use lending for debt-related positions, exchanges for pool-based returns, and staking for network-reward arrangements. The site deliberately contains no live rate offers or promises of profitability.