Yield Farming

Yield farming is an investment strategy within the cryptocurrency space where individuals provide their digital assets to decentralized platforms—like lending or liquidity pools—to earn rewards or interest. Think of it as earning interest on a savings account, but in a digital environment. By lending assets or supplying liquidity, users facilitate trading and other activities, and in return, they receive additional tokens or interest payments. Yield farming can be profitable but involves risks like market volatility and smart contract vulnerabilities. Overall, it's a way to generate passive income using cryptocurrencies through decentralized finance (DeFi) protocols.