Yield Farming 101: Sui – Space Recap

Yield Farming 101: Sui

In The Sui Sync series, one of our most practical conversations focused on Yield Farming – how users can put assets to work across Sui’s fast and composable DeFi ecosystem. Builders broke down strategies, risks, and the protocols driving new opportunities for passive income.

Key Themes & Highlights

  1. Yield Farming as Onboarding
    Yield farming remains one of the most powerful entry points into DeFi. Builders discussed how Sui’s speed and scalability make it easy for users to move liquidity across pools, earn rewards, and discover new protocols without high gas costs slowing them down.
  2. Strategies Beyond the Basics
    From single-asset staking to complex strategies like leveraged LPing and delta-neutral farming, the Space explored how farmers can maximize returns. Many agreed that composability on Sui allows these strategies to be executed more efficiently than on older L1s.
  3. The Role of Incentives
    Protocols shared how yield farming incentives are designed not just to attract TVL but to retain long-term users. Builders stressed the shift from short-term yield chasing to sustainable rewards that align with protocol growth.
  4. Stablecoins, BTC & LSTs in Farming
    The conversation highlighted how stablecoins, BTC derivatives, and liquid staking tokens (LSTs) are becoming key farming assets. These tokens provide both liquidity and resilience, forming the foundation of productive strategies.
  5. Risks & Risk Management
    Impermanent loss, market volatility, and smart contract risk remain part of yield farming. However, Sui projects emphasized education and tooling that help users manage risk – from analytics dashboards to automated vaults.

Takeaway

Yield farming on Sui isn’t just about chasing APRs – it’s about building capital efficiency and sustainability. With better tooling, composability, and assets like BTC and LSTs entering the mix, yield farming is becoming smarter, faster, and more rewarding.

At Tokeo, we make yield farming accessible by integrating Sui DeFi protocols directly into the wallet. Users can farm, stake, and track rewards seamlessly, without jumping between interfaces – all in one multichain hub.

If you missed the live Space, you can listen back here:
🔗 https://x.com/i/spaces/1jMJgRVWNXPGL