One is a Grammy-winning musician with a lot of free time. Another is a software developer who has nowhere to go during the pandemic. There is also an editor for a data site and a fund manager who invests in digital assets.
What these folks have in common is an obscure side hustle known as “yield farming,” a style of cryptocurrency trading and investing that didn’t exist at all until 2020. For short periods of time, we offer annual interest rates that match interest rates investors won’t find anywhere else can find.
As documented in First Mover over the past few months, the yield farming boom, itself a sub-sector of the rapidly evolving decentralized finance (DeFi) space, began in June with the launch of the Compound and Aave projects. Kyber, Balancer and Yearn.Finance soon followed. Other creative names like Spaghetti, Tendies and SushiSwap followed.
CoinDesk’s Daniel Cawrey spoke to four yield growers to get their stories. Here’s a link to his highly recommended piece, along with a video interview he did with André Allen Anjos, aka RAC, who finds time for yield farming in his spare time when he’s not producing and recording music.
Bitcoin’s low-volatility consolidation continues as the dust settles on the BitMEX controversy.
On Thursday, US authorities charged the crypto derivatives exchange with aiding and abetting illegal transactions.
Initially, bitcoin fell from $10,900 to $10,450 but recovered to $10,500 the following day. The cryptocurrency held its ground even though the regulator’s investigation sparked a massive outflow of bitcoins from BitMEX and a drop in futures open interest, in a sign of panic among traders.
However, despite surging to $10,700 over the weekend, the cryptocurrency remains trapped in a contracting triangle as seen on the daily chart.
A breakout would confirm the end of the pullback from the August high of $12,476 and a reversal to the upside. This would expose resistance at $11,183 (19th September high).
Alternatively, a range breakdown may result in more chart selling pressure.
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