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Yield Farming
Also known as liquidity mining, the term Yield Farming is used to describe the practice of earning a return on digital assets by providing liquidity to a decentralized finance (DeFi) protocol. It is a way for investors to earn a higher return on their assets by lending or staking them in a decentralized pool, or by providing liquidity to a decentralized exchange (DEX).
In exchange for providing liquidity to the pool, yield farmers earn rewards in the form of additional cryptocurrency, often in the form of governance tokens.