Yield Farming

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Yield Farming.

In decentralized finance (DeFi), yield farming is a process that allows a cryptocurrency holder to lock up their holdings and receive rewards from them.  Specifically, it’s a process that allows the holder to earn fixed (or variable) interest by investing their crypto in a DeFi market.  Essentially, crypto that would otherwise be sitting in an exchange or wallet is lent out via DeFi protocols in order to get a return.  Yield farming is typically carried out in relation to the Ethereum ecosystem and done using ERC-20 tokens through Ethereum with the reward being a form of the ERC-20 token.