DeFis Algorithmic Harvesters: Beyond Simple Yield Farming
Yield farming has emerged as one of the hottest trends in decentralized finance (DeFi), offering cryptocurrency holders the opportunity to earn rewards by providing liquidity to various DeFi protocols. But what exactly is yield farming, and how does it work? This comprehensive guide will delve into the mechanics, risks, and potential rewards of yield farming, providing you with the knowledge you need to navigate this exciting, yet complex, landscape.
What is Yield Farming?
The Basics of Yield Farming
Yield farming, also known as liquidity mining, involves staking or locking up your cryptocurrency assets in DeFi protocols to earn rewards. These rewards can come in the form of interest, transaction fees, or governance tokens. Farmers move their assets around different protocols to maximize t...