🌱 Ethereum Yield Farming (2025): Safe ETH Yield in 15 Minutes

New to DeFi and want passive ETH rewards without babysitting charts? This beginner-friendly Ethereum Yield Farming Cheat Sheet shows you how to earn yield safely, avoid common traps, and calculate realistic APY so you know exactly what to expect.

• 💼 Wallet basics & secure setup (seed hygiene, approvals, test tx)
• 🔒 Risk controls to avoid common DeFi scams and rug pulls
• 📈 APY vs APR explained + quick math for realistic returns
• 🧪 Step-by-step flow to deposit, monitor, and rebalance

🔥 Early price: €2 (may increase with new editions)

What Is ETH Yield Farming?

Yield farming on Ethereum means supplying, staking, or providing liquidity to protocols in exchange for rewards (fees, incentives, staking yield). Unlike trading, it’s a mostly passive strategy — your edge comes from choosing credible protocols, understanding fees & risks, and position sizing.

Quick Start: 5-Step Beginner Flow

1. Set up wallet (hardware if possible) → backup seed offline, enable phishing protection.
2. Fund gas buffer (ETH) + small test amount for first deposit.
3. Choose protocol using the rubric (TVL, audits, track record, docs, community).
4. Approve & deposit a tiny test → verify accrual → then scale size.
5. Monitor & rebalance monthly or when APR changes materially.

Inside the Cheat Sheet

• Wallet & Network Checklist: chain selection, gas planning, approval safety
• Platform Evaluation: TVL, audits, transparency, track record (quick rubric)
• Yield Math: APY/APR, compounding cadence, fee drag, IL primer
• Risk Playbook: smart-contract risk, depeg risk, liquidity risk, position limits
• Action Flow: deposit → verify accrual → harvest/compound → rebalance
• Templates: position log & yield tracker for accountability

APY Math Example (Conservative)

Suppose a pool lists APR 12%. Compounding monthly nets ≈12.68% APY before fees. If gas/claim fees cost €30 per month and position size is €2,000, fee drag ≈1.5% yearly → net ≈11.2% APY. The sheet includes a quick calculator template to sanity-check returns.

ETH Yield: Staking vs Liquidity vs Lending

• Staking ETH: simpler, lower active risk; great for set-and-forget.
• Lending: supply ETH or stables; yields depend on utilization; mind collateral rules.
• Liquidity Pools: earn swap fees/incentives but face impermanent loss; size positions accordingly.

The sheet teaches when to use which, how to cap downside, and how to rotate when incentives change.

Safety Rules You’ll Use

• Start with test transactions. Scale only after accrual is verified.
• Use approval revokers periodically; keep allowances minimal.
• Position caps: never park >20–30% of stack in a single contract.
• Stable pair bias for first LPs; prefer correlated pairs to reduce IL.

Who It’s For

– New DeFi users wanting a safe, structured start
– Traders parking profits in passive ETH strategies
– Funded traders needing low-touch yield between sessions

FAQ – ETH Yield Farming

❓ Is yield farming the same as staking?
✅ Not exactly. Staking secures a network for yield; yield farming broadly includes lending and liquidity provisioning too.

❓ What about impermanent loss (IL)?
✅ IL happens in liquidity pools when prices move. The sheet explains how to size positions, prefer correlated pairs, and when fees can offset IL.

❓ Do I need a lot of ETH?
✅ No. You can start small. Just account for gas fees and keep a buffer for network costs.

❓ How do I avoid rugs/scams?
✅ Use the included platform checklist: audits, TVL consistency, open-source code, and reputation. Start with tiny test transactions.

© EarnBasis — Asset 004: Ethereum Yield Farming (2025). Educational content, not financial advice.