# Yield Aggregator

* also known as ‘auto-compounder’ or ‘yield optimiser’
* automatically claim & re-invest interest gained
* some manage your fund on a single pool, some aggregator multiple strategies
* best for chains with high gas fee or smaller size investment

### Yield Farming

* general yields can be from providing liquidity, lending assets, staking, locking platform token to share protocol fees
* strategies like delta neutral & leverage lending are common in yield farming
  * delta neutral - build a short position for the token to be farmed to prevent token volatility, or deposit holding assets to borrow farm token, given the yield is more than borrowing fee
  * leverage lending - pay borrowing interest to borrowed more than the collaterals to amplify return

### Real Yield

* the revenue should be generated from an external & repeatable source, such as service/trading fee
* if token distribution is higher than project's revenue, the token emission may be considered as too high & not sustainable
* pool with unnaturally high APY are generally unsustainable
* tokenomic model varies over projects, the emission changes should be  considered when determining if it's a real yield

### Advantage vs. traditional financial process

* **Decentralised** - minimise centralised entities that charge multiple phases of service fees
* **Instant** - no processing time when switching strategies
* **Transparent** - can clearly trace how deposited assets are used by the protocol