Tag: DeFis Risky

Yield farming has taken the decentralized finance (DeFi) world by storm, offering crypto holders a lucrative way to earn passive income on their digital assets. But what exactly is yield farming, and how does it work? In this comprehensive guide, we'll break down the complexities of yield farming, explore its potential benefits and risks, and provide you with the knowledge to navigate this exciting, yet often challenging, landscape. What is Yield Farming? Yield farming, also known as liquidity mining, involves locking up cryptocurrency in a DeFi protocol to earn rewards. Think of it as lending your crypto to a decentralized exchange (DEX) or lending platform, and in return, you receive interest-like payments or governance tokens that can be sold or reinvested. The higher the demand for liq...