What Is Yield Farming?

Yield farming is the practice of staking or lending #crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency.

This innovative yet risky and volatile application of decentralized #finance (DeFi) has skyrocketed in popularity recently thanks to further innovations like liquidity #mining.

Yield farming is currently the biggest #growth driver of the still-nascent #DeFi sector, helping it to balloon from a market cap of $500 million to $10 billion in 2020.