In fact yield farming does not pay in bitcoin, but in token of governance of the protocol on which you immobilize your funds to give liquidity to the exchanges.
Therefore using yield farming you don’t get earnings in bitcoin. At most, as for example possible on Eidoo, you can staking your BTC, but the gains that you get are always in the governance token of the protocol (PNT, in the case of Eidoo).
BitQT and other methods: how to earn with DeFi
However, in addition to staking, there are also other forms of gain made possible by DeFi.
One of these is lending, i.e. lending your funds for interest.
The special thing about lending is that the earnings are obtained in the same token that is lent. That is generally by lending your BTC you get earnings in bitcoin.
Lending and yield farming are however just two different things, so that also the yields are definitely different.
The yields of the lending are for some ways similar to those that could be obtained giving in loan currency fiat, while those that can be obtained with the yield farming are potentially higher, even if they vary a lot according to the price fluctuations of the tokens that are obtained as gain.
One of the most important DeFi platforms that allows you to borrow bitcoins, for example, and obtain gains in bitcoin, is Compound, which can also be easily used via the Eidoo wallet itself.
Everything happens thanks to the cWBTC token, which allows through a simple swap to provide WBTC on loan to the Compound protocol. The latter in exchange provides cWBTC tokens that increase over time thanks to the interest payable that will pay who will borrow the WBTC exchanged with cWBTC.
These cWBTC tokens can then be rewapped back into WBTC tokens at any time, interrupting the loan.
WBTC is a token ERC-20 representing bitcoin 1:1 on the Ethereum blockchain, necessary for the use of Compound since this protocol is also based on this blockchain.
Therefore you can exchange bitcoins with WBTC, and then swap WBTC with cWBTC to borrow the WBTC obtained from the exchange with bitcoin, so you can immediately start earning interest on cWBTC. At any time you can do the opposite operation, and get back the bitcoins, which will be increased in the meantime.
It has to be said, however, that DeFi lending allows you to earn bitcoins, but with interest rates that can at most reasonably reach 10% per annum. Yield farming for example promises much higher yields, although everything depends on the market value of the tokens you get in return.