🧠 Topic: What is yield farming, how does it work, and how to avoid becoming its victim

🌾 What is yield farming?
It's a way to earn income by providing liquidity to DeFi protocols in exchange for rewards — most often in the form of tokens.#cryptoland_88

You 'plant' your tokens in a pool — and 'harvest' returns in the form of yield.

💸 How it works:

You add liquidity to a pool (for example, $ETH /$USDC )

You receive LP tokens (confirmation of participation)

You stake these LP tokens in a farming contract

You receive rewards — often in the native tokens of the project

📈 Yields can vary:

Trading fees (within the pool)

Bonuses from the project (inflationary tokens)

Access to airdrops and #DAO -voting

⚠️ Risks of farming:
🔹 Impermanent Loss — see issue #11
🔹 High volatility of the reward token — you may not be able to sell in time
🔹 Rug pulls and hacks — unsafe smart contracts
🔹 Fake projects with high APY — bait for beginners

🚨 How to avoid becoming a victim:
✅ Study the project: who is the team, is there an audit
✅ Check the tokenomics: where do the rewards come from
✅ Use trusted platforms: Curve, Uniswap, Aave, PancakeSwap
✅ Don’t invest everything in one pool — diversify$BNB

🔧 Tools for farmers:

YieldYak — strategy aggregator

APY.vision — income tracking

Beefy Finance — auto-compounding

Zapper — convenient access to pools

📌 Conclusion:
Farming is a powerful income tool in DeFi, but it requires an understanding of the risks.
If everything seems simple and the APY is 1,000% — it's almost certainly a trap.

📖 In the next issue, I will tell you: @Cryptoland_88
What is lending in crypto, how borrowing works, and how to earn from it safely.

👆 The article is for informational purposes only and is not investment advice. Thank you for your subscriptions, likes, and comments!