The yards formed compounds (8)

I believe the answer is:

hydrates

'compounds' is the definition.
(hydrate is a kind of compound)

'the yards formed' is the wordplay.
'formed' indicates an anagram.
'the'+'yards'='theyards'
'theyards' is an anagram of 'HYDRATES'.

(Another definition for hydrates that I've seen is " Combines with water".)

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