DeFi farms are platforms or protocols within the decentralized finance ecosystem where users, known as yield farmers or liquidity providers (LPs), deposit their cryptocurrency assets into liquidity pools to earn rewards. These pools are smart contracts that facilitate decentralized trading, lending, or borrowing on platforms like decentralized exchanges (DEXs) or lending protocols. In return for contributing liquidity, farmers receive rewards in the form of interest, transaction fees, or governance tokens, often yielding annual percentage yields (APYs) far exceeding traditional banking returns.The term "farming" draws an analogy to agriculture: users "plant" their crypto assets in a pool and "harvest" rewards over time. Popular DeFi farming platforms include Uniswap, Aave, Curve Finance, Compound, PancakeSwap (on Binance Smart Chain), and Yearn Finance, each offering unique pools and reward structures. According to DeFiPulse, over $50 billion in crypto assets are locked in DeFi protocols, with a significant portion dedicated to yield farming.