DeutschYield Farming is an important part of the DeFi sector.
What is Yield Farming?
In Yield Farming, crypto holders provide their own coins and tokens within protocols. This often happens via so-called liquidity pools, in which their own cryptocurrencies are locked and cannot be sold by the holders for the time being. The “farmers” are rewarded for providing the liquidity. For example, they receive interest on their reserves or rewards in a predetermined amount.
Yield Farming, i.e. crypto-lending protocols, represents an alternative to passive income through staking.
