Financial Mathematics Seminar: Lorenzo Schoenleber, Collegio Carlo Alberto University of Turin, Maneuvering and Investing in Yield Farms
SAS 4201This article is about yield farming, which refers to a decentralized finance strategy of providing liquidity and seeking associated rewards in the form of transpired-transaction fees. We explain and demystify yield farming and quantify transaction costs, returns, and risks using on-chain data from major decentralized exchanges. We provide a mathematical framework that resembles a representative…