CRYPTO GLOSSARY · FINANCE

What is Yield Farming?

Earning rewards by providing crypto liquidity.

📖 Full Definition

Yield farming is the practice of lending or staking cryptocurrencies in DeFi protocols to earn rewards. Farmers move funds between protocols to maximize returns, often earning multiple tokens simultaneously.

💡 Example

Yield farmers might earn 20-100%+ APY by providing liquidity to Curve, Uniswap, or Aave.

🔗 Related Terms

DeFi

Decentralized Finance: financial services on blockchain.

Liquidity Pool

Pool of tokens enabling decentralized trading.

APY

Annual Percentage Yield with compounding.

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