Skip to main content

What Is “Yield Farming” in DeFi?

Yield Farming is the practice of staking or lending crypto assets in various DeFi protocols to generate the highest possible returns (yields). Farmers move their assets between different protocols to chase the best opportunities, which can involve earning trading fees, interest, or governance tokens (liquidity mining).

It is a high-risk, high-reward activity.

How Does Staking Yield Compare to Traditional Interest Rates?
What Is the Impact of “Vega” on a Long-Term Option?
How Does the Volatility of the Underlying Asset Affect an Option’s Premium (Vega)?
What Is ‘Yield Farming’ and How Does It Differ from Staking?