What is Yield Farming in Crypto?. If you’re diving into the world of… | by PRASIT | The Capital | May, 2025
If you’re diving into the world of Decentralized Finance (DeFi), then understanding yield farming is essential.
In simple terms, yield farming is the process of strategically placing your cryptocurrency to earn more crypto.
Think of it as finding the best spots to plant your financial seeds.
In this guide, we’ll explore the ins and outs of yield farming, including popular methods and the risks involved.
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Yield farming is a term that combines two concepts: ‘yield’, which refers to the returns on investments, and ‘farming’, representing the act of cultivating those returns.
Essentially, yield farming allows you to earn a return on your crypto investments by depositing them into various protocols.
Some platforms even advertise returns as high as $3,000 a year for every $1,000 invested.
