<p><span style="color: #333300;">As people jump on the "yield farming" bandwagon, one of the industry's largest lenders says it has seen an uptick in stablecoin borrow rates.</span></p> <p>In essence, yield farming is a catch-all phrase for trying to secure the greatest possible yield from various DeFi products and protocols. And as the data suggests, COMP has fallen into the crosshairs of would-be farmers.</p> <p><span style="color: #333300;">Crypto speculators have been pouring onto Compound to generate COMP, its governance token that went live on June 15. Users who lend or borrow COMP on Compound's platform can generate a yield, similar to how investors can earn a yield from a savings account. Unlike your standard interest-bearing account in traditional finance, interest rates on Compound can fetch users a <a href="https://twitter.com/tonysheng/status/1274393189231689728">high yield</a>, depending on the price of COMP and the strategies employed.</span></p> <p><span style="color: #333300;">To earn a yield on Compound, a speculator must deposit collateral. That collateral can be in the form of Ether (ETH) or any ERC20 token that Compound's platform supports, including stablecoins like USDC and USDT. </span></p> <p><span style="color: #333300;">During the past week, Genesis Capital, a division of Genesis Global Trading, has seen a rise in short-term stablecoin and ERC20 borrow rates. This increase is an indication that people are increasingly looking to borrow crypto to use as collateral to earn a yield on Compound. </span></p> <p><span style="color: #333300;">Joshua Lim, head of derivatives at Genesis Global, says this is tied to the "COMP harvesting trade."</span></p> <p><span style="color: #333300;">"We also fielded a number of requests for COMP token borrow over the weekend as liquidity providers positioned inventory ahead of centralized exchange listings," he told The Block.</span></p> <p><span style="color: #333300;">The price of COMP has grown by more than 770% since its launch, as shown in the graph below:</span></p> <p><a href="https://www.theblockcrypto.com/linked/69220/screen-shot-2020-06-22-at-5-20-10-pm" rel="attachment wp-att-69241"><img class="wp-image-69241 size-full aligncenter" src="https://www.tbstat.com/wp/uploads/2020/06/Screen-Shot-2020-06-22-at-5.20.10-PM.png" alt="" width="2760" height="1032" /></a></p>