Yield Farming
Also known as: Liquidity Mining, Yield Strategies
Strategy of earning rewards by providing liquidity or staking in DeFi protocols.
Yield Farming refers to the process of staking or lending crypto assets in DeFi protocols to earn returns—often by providing liquidity to pools, locking tokens in smart contracts, or participating in incentive programs. Yield farmers move assets across platforms to chase high APYs, leverage their positions, and compound earnings. While yields can be substantial, risks include smart contract failures, impermanent loss, regulatory uncertainty, and volatile returns.