Yield Farming
By CoinGecko | Updated on Aug 13, 2021
Yield farming involves putting cryptocurrency into a DeFi protocol to collect interest on trading fees. Liquidity providers can profit by providing liquidity in DeFi protocols like Uniswap, utilizing assets that would otherwise sit idle on an exchange or hot wallet.
Related Terms
Non-custodial
It is a decentralized type-of-wallet, where the users owns its private keys.
Validator
A block-signing participant of a Proof of Stake blockchain network, whom have significant tokens staked on the network.
Faucet
A faucet usually represents a site or app where a user can navigate to for small rewards repeated over time.
Token
Blockchain based unit of value issued by an organization, which grants token holders a right to participate in a network.
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