MAEXO

Yield farming

Glossary

DeFi

Yield farming

Earning rewards by supplying liquidity or staking in DeFi protocols.

Definition

In depth

Yield farming means moving capital between DeFi protocols to capture the highest combined yield — usually a mix of swap fees, lending interest and protocol token rewards. APYs can be eye-popping but carry smart-contract, depeg and token-emission risk.

Related

Related terms

Liquidity pool

A pool of two tokens that powers AMM swaps and pays fees to providers.

Staking

Locking tokens to help secure a proof-of-stake network and earn rewards.

DeFi (Decentralized Finance)

Financial apps that run on public blockchains without intermediaries.

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