Thread by @CrossChainAlex

🧵 Beginner's guide to Farming-as-a-Service #FaaS. FaaS or Investing-as-a-Service #IaaS, known as DeFi 3.0, is a new trend in #DeFi that a lot of people are unaware of. Here's a simple, non-biased beginner's guide to a new opportunity to earn passive income from crypto (1/14)

In simple terms, with #FaaS / #IaaS you are paying experts (through purchasing their specific token) for them to yield farm and invest for you, then returning those profits back to you. It is #DeFi made easy. Buy and hold the token, they farm and invest, you profit. (2/14)

But what is #DeFi yield farming? You lend or lock up your tokens to support the liquidity and growth of a specific protocol, and in return you receive rewards, or yields. But it is time intensive, complex and comes with many risks. (3/14)

If you want to learn more about #DeFi yield farming I recommend following: @Route2FI @rektfoodfarmer @blocmatesdotcom @shivsakhuja. But now let's look at the mechanics of #FaaS / #IaaS in more detail. (4/14)

How does it work? Typically you will buy a #FaaS / #IaaS token. Buys and sells are taxed at usually between 10 to 12%. Some of that tax goes to rewards to holders, liquidity, or burns (for deflation). But a large portion usually goes to the farming / investing wallet. (5/14)

The protocol's expert farmers will take those funds, find the best farming and investment opportunities across multiple blockchains. They invest those funds, and constantly monitor and adjust those positions to optimize profits. (6/14)

Different protocols offer different strategies including; #DeFi yield farming, spot investments, seed investments, #NFTs, #metaverse etc., or a mix of all the aforementioned. Innovative new models are emerging every day. (7/14)

The protocol will then either use profits to buyback their own token (to raise the price floor), or return those profits to holders as dividends. The end goal is to generate profits and use those profits to increase the price of the token whilst rewarding holders. (8/14)

In summary, you buy one token, you get an expert to do all the hard work for you, they return profits to you. If you're inexperienced, don't have the time, or want passive income with minimal effort, this could be an option for you to explore. #NFA (9/14)

Of course this is a new and exciting area and there are risks. Do the protocol's farmers have a proven track record of profitability? Can the protocol scale to a level where they do not solely rely on trading volume for treasury growth? Etc. #DYOR (10/14)

Here's some projects to look at. Disclaimer: I am part of the core team at @crosschainfarm and @d3protocol and I hold personal investments in some of the following projects. I am not endorsing any particular project. Be careful and #DYOR (11/14)

Key #FaaS / #IaaS projects leading the way: @CrossChainFarm @ReimaginedFi @AGFI_Official @ACYCapital @AlphaBrainCap @MulChainCapital (12/14)

New launches that people are talking about and popping up in my DMs a lot: @Inu_Capital @ChadFiDAO @Roaring20sDAO (13/14)

I hope this thread was useful. As always none of this is financial advice. Please be careful and do your own research before investing. Only invest what you can afford to lose. Drop me a reply or a DM if you have any questions. #DeFi #DeFi3 #FaaS #IaaS (14/14)