Yield Farming: Navigating Impermanent Loss And Emerging Strategies
Yield farming has emerged as a groundbreaking concept in the decentralized finance (DeFi) space, enabling users to earn rewards with their cryptocurrency holdings. By providing liquidity to DeFi platforms, users can tap into a world of passive income, making their digital assets work for them. This guide explores the ins and outs of yield farming, covering its mechanisms, risks, and strategies to help you navigate this exciting yet complex landscape.
What is Yield Farming?
The Basics of Yield Farming
Yield farming, also known as liquidity mining, is a process where users provide liquidity to decentralized exchanges (DEXs) or other DeFi protocols in exchange for rewards. These rewards are typically in the form of the protocol's native token or a portion of the transaction fees generated by ...