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
Centralized
An organization structure wherein a small handful of actors have control over the entire network.
Hybrid PoW/PoS
It is the allowance for both Proof-of-Stake and Proof-of-Work distribution consensus to work on the same network.
Ponzi Scheme
A Ponzi scheme is also referred to as pyramid scheme, and typically takes the form of an investment scheme which pays existing investors with funds collected from new investors.
Burned Tokens
Tokens which have been sent to addresses whose private key are not known, effectively becoming unusable.
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