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
Impermanent Loss
Temporary loss of funds due to volatility leading to divergence in price between token pairs provided by liquidity providers.
Arbitrage
A strategy where investors buy a currency in a market and sell it at a higher price in another market to gain profit.
Public Keys
The alphanumeric string which serves as a public receiving address in cryptocurrencies.
Decentralized Finance (DeFi)
Decentralized Finance (DeFi) refers to the movement of building decentralized financial applications that have no central authority and is censorship free.
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