How Do Yield Farming and Staking Differ in the DeFi Ecosystem?

Yield farming is the practice of leveraging various DeFi protocols to maximize returns on crypto holdings, often involving moving funds between platforms to find the best yields. Staking, conversely, is the act of locking up tokens to secure a Proof-of-Stake (PoS) network, in return for staking rewards, which are typically new tokens or transaction fees.

While both earn passive income, yield farming is generally more complex and carries higher risk, whereas staking is a direct participation in network consensus.