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
Liquidity
The ease of which cryptocurrency can be bought and sold without impacting the overall market price.
InterPlanetary File System (IPFS)
The InterPlanetary File System (IPFS) is a peer-to-peer network and distributed file system protocol for storing and transferring data.
Permissioned Blockchain
It is a private blockchain where the nodes must be previously authorized by a central entity.
Non-custodial
It is a decentralized type-of-wallet, where the users owns its private keys.
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