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
Venture Capital
capital (funds) that is invested in a company that needs a substantial pool of funds to initiate.
Ledger
A record of financial transactions that cannot be changed, only appended with new transactions.
Derivatives Market
A market for derivatives which are instruments such as futures or options whose value is derived from an underlying asset.
STO
Security Token Offering (STO) refers to a public offering for tokenized digital securities, or in short security tokens traded in cryptocurrency exchanges.
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