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# What is Pyrus Yield Farming?

Yield Farming is a method for maximizing the rate of return on initial capital investment (capital investment) by using different DeFi protocols. A yield farmer will attempt to optimize their production by experimenting with a variety of techniques. A successful method usually employs the fewest DeFi protocols, such as Compound, Synthetix, or Curve, as opposed to more complex approaches. When a technique no longer produces a good yield, farmers may move their money across protocols or exchange coins for other methods that generate a higher yield. In order to make yield farming more understandable, it would be helpful to relate it to traditional finance. Consider the following scenario: an investor is looking for a new savings account with the highest annual percentage return. She would analyze the accounts and decide which would provide her with the best overall return on her investment across various categories. The returns of different yield farming techniques may all be expressed in the same way, using the same mathematical formula. While many savings accounts provide just 0.1 percent annual percentage yield (APY), yield farming may offer rates as high as 100 percent APY, which is a significant increase over conventional financial techniques.

&#x20;**How does yield farming work?**

Let us consider another scenario in which an investor contacts a DeFi platform such as Pyrus, acquires crypto assets, and loans them to borrowers. The borrowers are repaying the investor the interest on the loan they received from the investor. Interest rates may be constant or variable, depending on the platform and the rates established by that platform. Pyrus Finance, for example, rewards investors with its native token "Pyrus" in addition to the interest payment received from the company.&#x20;

To borrow money from the platform, a borrower will be required to deposit a sum equal to double the amount of money being borrowed as collateral before the transaction can be completed. The collateral value may be confirmed at any point in time, thanks to the use of smart contracts. If it is less than the amount borrowed, the contract may be triggered, resulting in the liquidation of the borrower's account and the payment of interest to the lender. This means that even if the borrower defaults on their payments, the lender will never suffer a loss.&#x20;

Among the most popular concepts in the decentralized financial sector, yield farming has taken over the whole DeFi ecosystem in the past year, becoming one of the most talked-about topics in the industry. According to the company, it provides investors with incentives for securing their crypto assets in a Pyrus finance market.&#x20;

Yield farming is a method that allows cryptocurrency users to earn rewards for their holdings that is fundamental to the concept of Pyrus financing. Pyrus Network yield farming is a technique in which an investor deposits units of a cryptocurrency into a lending protocol in exchange for interest on transaction costs. Additional yields from the governance token of the system are given to specific users as an extra incentive. Using Pyrus Network Yield Farming, one may drive a DeFi market by collaborating with a liquidity provider and a liquidity pool (a smart contract filled with cash).
