Internet
yield farming
What does yield farming mean?
The practice of deploying assets across DeFi protocols — providing liquidity, staking, or lending — to maximise reward yield, often hopping between platforms as incentives shift.
"He's yield farming across three protocols to squeeze out the highest APY."
Origin
Coined during 'DeFi Summer' 2020 when liquidity-mining rewards took off.
Frequently asked questions
What is yield farming?
It's deploying crypto across DeFi protocols — via liquidity provision, staking or lending — to maximise reward yield, often moving between platforms as incentives change.
Is yield farming risky?
Yes, risks include smart-contract bugs, impermanent loss, and volatile reward tokens whose value can crash, so high advertised APYs can be misleading.
When did yield farming start?
It took off during 'DeFi Summer' in 2020 when protocols began handing out liquidity-mining rewards.
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