Many must be confused, What is Farming?
Farming (or yield farming) is a strategy in the DeFi (Decentralized Finance) world to earn interest or yield from crypto assets. The way it works is that you deposit ("supply") your assets into DeFi protocols like Venus, Aave, Compound, or Lido, and then you will receive rewards in the form of interest or tokens.
A simple example is like this:
You deposit 1 ETH in Venus → you will earn interest every day or week in the form of ETH or other tokens.
What is Looping?
Looping is an advanced technique in farming, where you:
1. Supply assets (e.g., ETH)
2. Then borrow back some of the assets you have supplied
3. Resupply the results of that loan
4. Repeat this process several times
The goal is to increase the total amount you supply, so that the interest you earn is also greater.
⚠️ But remember to be careful! Looping increases profit potential but also risk, especially liquidation risk (your assets are forcibly sold if their value drops too much). Always keep LVT below 50%.
Safe Farming Strategies for Beginners
For those of you who are just starting, here are safe farming strategies that are suitable for beginners:
✅ 1. Use Trusted Protocols
Use well-audited and reputable major DeFi protocols such as:
Venus (BSC) – suitable for ETH and SOL
Aave (Polygon / Ethereum)
Lido (ETH staking)
Marinade (SOL staking)
✅ 2. Just Supply, Don't Borrow Yet
Focus first on supplying without borrowing or looping. The goal is to keep you safe from liquidation risk.
3. Start with a Small Amount
For example:
Rp10,000-50,000 per week for ETH
Rp10,000-40,000 per week for SOL
After accumulating enough, then supply it to the protocol.
4. Evaluate Results Every Month
Check how much interest you are getting and your current asset value. Is it increasing? Is it worth it compared to just keeping it?
this is a simple concept illustration:
[Web3 Wallet]
⬇️
Supply ETH to Venus
⬇️
Venus gives interest
⬇️
Your ETH increases every day (even if it's a little)
For Looping:
[Web3 Wallet]
⬇️
Supply ETH to Venus
⬇️
Borrow ETH again (e.g., 50%)
⬇️
Supply again to Venus
⬇️
Repeat
I also have Safe Farming Recommendations (Without Looping):
In conclusion
Farming is a great way to generate passive assets from the crypto you own. For beginners, avoid looping for now, focus on just supplying in safe protocols like Venus, Lido, or Aave. Start small, consistently, and evaluate every month.
If you understand, we can slowly discuss looping further in a practical and safe manner.
