BREAKDOWN: A Simple Explanation of DeFi and Yield Farming Using Actual Human Words
CoinDesk Podcast Network
CoinDesk
4.8 • 689 Ratings
🗓️ 22 July 2020
⏱️ 27 minutes
🧾️ Download transcript
Summary
A primer on yield farming, liquidity mining, automated market making and all the other terms shaping the brave new world of decentralized finance.
This episode is sponsored by Bitstamp and Crypto.com.
Today on the Brief:
- US Gov’t forces China’s Houston consulate to close
- US previously-owned housing market grows 20.7% May to June
- Insider stock selling reaches record levels
Our main discussion: DeFi 101
Today’s episode of The Breakdown is a primer for anyone who has lost track of the terminology surrounding decentralized finance. In it, NLW goes over:
- DeFi’s background and origins
- Market making in a traditional context
- Automated market making
- How liquidity mining incentives economic participation
- How decentralized exchanges differ from centralized exchanges
- What “yield farming” actually means
- Why we shouldn’t be concerned about the Yield Farming bubble
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Transcript
Click on a timestamp to play from that location
| 0:00.0 | The countryman is busy gathering his harvest. |
| 0:03.0 | Today one can still hear the song of the sigh |
| 0:07.0 | and watch the beautiful rhythm of its swing. |
| 0:11.0 | Following the binder come the stucas, |
| 0:13.0 | setting up the sheaves to keep the heads off the ground. |
| 0:27.6 | Now for next year's harvest, warming never stopped. |
| 0:38.9 | Welcome back to the breakdown, an everyday analysis breaking down the most important stories in Bitcoin, Crypto, and Beyond. |
| 0:44.4 | This episode is sponsored by BitStamp and Crypto.com. |
| 0:48.0 | The breakdown is produced and distributed by CoinDesk. |
| 0:52.3 | And now, here's your host, NLW. |
| 0:56.2 | What's going on, guys? |
| 1:04.0 | It is Wednesday, July 22nd, and the audio that you just heard is this awesome old 1950s farming PSA type video that someone turned into an incredible meme about yield farming in Defi. And so that is, in fact, |
| 1:14.3 | our main topic for today. We're doing a basically a 101 ELI-5 type of explanation of some of these |
| 1:21.4 | key terms that you might be hearing about. And just to let you know, if you are a Defy Pro, |
| 1:26.6 | this is not going to offer a lot of insight |
| 1:28.7 | for you. This show is definitely aimed at the folks who are maybe coming from the macro perspective |
| 1:34.3 | and who really just want to understand this thing that they maybe are hearing about because it's |
| 1:38.7 | kind of reaching that level of buzz. So if that fits you, awesome. And if not, well, I hope you |
| 1:43.9 | enjoy the brief. And with that, |
| 1:45.5 | let's get into it. First up on the brief today, the Chinese consulate closure. So the U.S. has |
| 1:51.5 | ordered the China consulate in Houston closed, accusing China of conducting, quote, |
| 1:57.5 | massive illegal spying and influence operations throughout the United States against |
... |
Please login to see the full transcript.
Disclaimer: The podcast and artwork embedded on this page are from CoinDesk, and are the property of its owner and not affiliated with or endorsed by Tapesearch.
Generated transcripts are the property of CoinDesk and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.
Copyright © Tapesearch 2025.