I constantly see questions in the community about farming and how to make money from it. Let's figure out what it actually is and why it might be interesting.

Farming is essentially a way to earn income from your crypto assets. You deposit your tokens into a DeFi protocol (like Venus, Aave, or Lido), and they start working for you, generating interest. Sounds simple? Because that’s exactly what it is at a basic level. You give ETH to the protocol, and you receive rewards in the form of interest or other tokens. Every day or week, your balance grows.

But there is a more advanced technique called looping. Looping is when you take a loan against already provided assets and deposit them back into the protocol. You repeat this cycle several times. The idea is to increase the volume working for you, which means the interest earned will be higher. Sounds tempting, but there’s a catch — looping is not only an opportunity to earn more but also a risk of losing more. If the price drops, your assets can be forcibly liquidated. So if you decide to experiment with looping, keep the LVT ratio below 50%.

For those just starting out, I would advise forgetting about looping for now. Focus first on simple farming in trusted protocols. Venus on BSC works well for ETH and SOL, Aave on Polygon or Ethereum is also a reliable option, Lido for staking ETH, Marinade for SOL. All these protocols have undergone audits and have a good reputation.

Start small. For example, set aside 10-50 thousand rubles a week for ETH or 10-40 thousand for SOL, accumulate, and periodically deposit into the protocol. Don’t rush. First, just provide assets without loans. The goal is to avoid liquidation risk and understand how it all works.

Check your results every month. How many percent did you actually earn? Did the value of your assets increase? Is it worth the gas costs and risks? This will help you understand whether it makes sense to continue or switch to another strategy.

The process is simple: Web3 wallet → deposit ETH into Venus → earn interest → your ETH grows every day. Not quickly, but steadily. When you gain experience and understand the mechanics, then you can consider more complex strategies.

Current prices: ETH is trading around 2.30K with a 1.67% increase over the day, SOL is at 83.91 with a 0.46% growth. Both assets are suitable for farming.

In the end: farming is a great way to earn passive income from the crypto you already have. Start simple, choose reliable protocols, invest regularly and with small amounts. Looping is a more risky technique that can wait until you gain more experience. The main thing — don’t rush and always remember the risks.