In decentralized finance (DeFi), yield farming is a process that allows a cryptocurrency holder to lock up their holdings and receive rewards from them. Specifically, it’s a process that allows the holder to earn fixed (or variable) interest by investing their crypto in a DeFi market. Essentially, crypto that would otherwise be sitting in an exchange or wallet is lent out via DeFi protocols in order to get a return. Yield farming is typically carried out in relation to the Ethereum ecosystem and done using ERC-20 tokens through Ethereum with the reward being a form of the ERC-20 token.
Yield Farming
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Yield Farming.