Yield farming is the trend of the day in Ethereum, catalyzed by the recent Compound and Balancer token launches. Yield farming is is moving capital into and out of various protocols to earn yield (paid both from borrowers of protocols and new token issuances).There's a few factors that have come together to make now an exciting time for yield farming on Ethereum:There's been a proliferation of Ethereum-based lending (MakerDAO, Compound, Aave, etc) and trading protocols (Kyber, Uniswap, Balancer, etc) that have thousands of passionate usersEthereum and the ERC20 token standard makes it easy for any of these protocols to create and issue tokens based on usageUnlike traditional financial products, on Ethereum competition is high, anyone can use these products and switching costs are low so it's easy to move in and out of many different productsOur view is that some of the dynamics at play are out of whack (yields are unsustainably high and valuations are inflated in most cases) and short-term speculation is driving behavior, but the factors above will continue to drive adoption of open, global financial products on Ethereum over the long-term.