Beyond Staking: DeFis Risky, Rewarding Yield Farms
Yield farming has exploded in popularity within the decentralized finance (DeFi) space, attracting both seasoned crypto investors and newcomers alike. It's a revolutionary way to earn rewards with your crypto assets, but it can also be complex and risky. This guide will break down the concept of yield farming, explaining how it works, its potential benefits and risks, and how you can get started.
What is Yield Farming?
Understanding the Core Concept
Yield farming, at its core, is the practice of lending or staking your crypto assets in DeFi protocols to earn rewards, often in the form of additional cryptocurrency. Think of it as putting your cryptocurrency to work to generate passive income. These rewards can be in the form of the platform's native token or other cryptocurrencies. Yield fa...