Yield Farming

Yield farming allows crypto holders to earn returns by supplying their assets to decentralized protocols. Liquidity providers deposit funds into pools on platforms like Uniswap or Curve and receive rewards in the form of fees, governance tokens, or additional crypto assets.

While yield farming can deliver high returns, it also carries risks such as impermanent loss, smart contract bugs, and market volatility. For many investors, it represents a new form of passive income in the decentralized economy. As DeFi grows, yield farming continues to evolve with more sophisticated strategies and risk management tools.