The core idea of yield farming is generating passive income with your existing crypto.

What is crypto yield farming. Yield farming gets its name from the fact that investors move their assets from platform to platform to seeking the highest yield. Yield farming also known as liquidity mining involves depositing and lending crypto underlying a mining mechanism to liquidate the liquidity pool for lucrative rewards. A yield farmer is someone who purchases an asset like DAI or ETH and then locks it up in a DeFi protocol in exchange for a return on their investment.

What is yield farming. It is also attracting many new users to the world of DeFi. Yield farming is the act of putting your money into decentralized finance DeFi applications as a liquid provider to earn interest fees or other rewards.

On most platforms users deposit their assets in a liquidity pool or stake their assets via a smart contract. What are the best yield farming cryptocurrencies. It offers various yield farming opportunities that are.

Yield farming is the popular strategy DeFi users take advantage of to put their cryptocurrencies to work to earn high interest. Yield farming also known as liquidity mining is a method to generate rewards with cryptocurrency assets. More specifically its a process that lets you earn either fixed or variable interest by investing crypto in a DeFi market.

Many of them are now flocking towards yield farming. Yield Farming has become the latest trend among crypto enthusiasts. Yet one must not forget that there are serious risks associated with it.

Farming or Yield Farming to be exact is an act of putting your crypto assets to work to generate more crypto. Compound is a money market for lending and borrowing assets where algorithmically adjusted compound interest as well. In a way it means locking up cryptocurrencies and get rewards for them.