Put your Bitcoin to work by investing easily with Yield Farming. Yield Farming trades your funds for you automatically 24/7, and earns an income by helping other LVL users exchange their cash and crypto.
Yield Farming uses a proven strategy called Market Making, and is powered by state-of-the-art algorithms. Your assets are used to buy crypto below market price and sell it back above market price (your spread). This provides value by creating liquidity for other users, and you earn a profit on the spread you charge.
On Many marketplaces, Market Making is an exclusive privilege reserved for the marketplace or high frequency trading firms. On Coinbase Consumer, for example, consumers are charged a 2-17% Market Making fee, with all proceeds going to Coinbase. Through Yield Farming, we offer Market Making to all LVL Premium members. We don’t take a cut, and Autopilot strategies are included in your subscription.
To activate Yield Farming, first go to the Autopilot screen. Select Yield Farming from the strategies. A red-dot next to the strategy indicates it is not currently active, and a pulsing green dot means it is currently active. First, you can add funds (cash, crypto, or both), and then turn on the coins you want it to trade. Once engaged, it will begin attempting to trade, which is confirmed by the pulsing green dot on the strategies list. The Yield Farming screen will list the 10 most recent trades made.
Yield Farmers provide all of the liquidity for market orders. When a LVL member places a market buy or sell, they are buying from or selling to a Yield Farmer. The assets you add to Yield Farming are not being lent, they are actively traded with. Farming will hold and automatically maintain a balanced inventory of roughly 50/50 cash and crypto. The crypto you add to Farming will be sold for cash, this cash is used to buy more crypto, and this cycle continues so that you can earn in both assets over time.
Since it usually holds some cash, by using Farming you inherently lose some exposure to movement in the asset price, in exchange for a potential return from market making. This can also be thought of as a hedge against a down market.
No investment strategy can completely eliminate the risk of investment losses. You are responsible for the risks and the financial resources you use to determine an investment strategy. You should not engage in trading unless you fully understand the nature of the transactions you are participating in and the extent of your exposure and tolerance for investment losses. If you do not fully understand the risks involved in trading, we encourage you to seek independent advice from a financial advisor.
Add Funds
To add funds to Yield Farming:
- Go to the Autopilot screen, and select the Yield Farming strategy
- Press Add
- Select the asset you want to add: cash or crypto (you can add either or both)
- Enter an amount of the asset to add
- Press the Add button
- Slide to confirm
You can add more funds to Yield Farming anytime, these transfers are free and instant. Once you add funds, you can then enable trading by switching the toggles on for the assets you want Farming to trade.
Enable Trading
Once Yield Farming is funded, engage trading for an asset by switching on the toggle for that asset. You can engage one or more assets at once. Once funded and engaged, Yield Farming will begin trading automatically. You can turn trading on and off anytime by turning the asset toggles on and off.
Farming will start posting limit orders every few minutes, waiting to match and fill other LVL members’ market orders. As you fill orders, the last 10 will show in the Activity list.
Remove Funds
To remove funds from Yield Farming:
- Go to the Autopilot screen, and select the Yield Farming strategy
- Remove the toggles from all coins, which stops trading
- Press Remove
- Select the asset you want to remove: cash or crypto
- Enter an amount of the asset to remove
- Press the Remove button
- Slide to confirm
You can remove funds from Farming anytime, these transfers are free and instant. The cash you remove will go back to your LVL checking account, and the crypto will be moved to its respective wallet.