Yield Farming
DeFi
Earning tokens by providing liquidity.
Yield farming distributes incentives (tokens or fees) to users who supply liquidity, stake assets, or participate in protocols. Risks include impermanent loss and contract bugs.
Frequently asked questions
How do I farm safely?
Start small, use audited protocols, and track IL vs fees. Beware of short lived incentives.What returns are realistic?
They change with volume, incentives, and risk. High APYs often fall fast as capital arrives.How do I compare farms?
Look at net returns after fees and IL, token quality, and lockup terms.