When you’re diving into the world of Decentralized Finance (DeFi), then understanding yield farming is crucial.
In easy phrases, yield farming is the method of strategically inserting your cryptocurrency to earn extra crypto.
Consider it as discovering one of the best spots to plant your monetary seeds.
On this information, we’ll discover the ins and outs of yield farming, together with fashionable strategies and the dangers concerned.
Desk of Contents
Yield farming is a time period that mixes two ideas: ‘yield’, which refers back to the returns on investments, and ‘farming’, representing the act of cultivating these returns.
Primarily, yield farming permits you to earn a return in your crypto investments by depositing them into varied protocols.
Some platforms even promote returns as excessive as $3,000 a yr for each $1,000 invested.
