🌾 #YieldFarming101: Make your crypto work for you.
In the DeFi universe, you don't just have to hodl — it's possible to generate passive income by putting your assets to work. Welcome to the world of Yield Farming.
📌 What is Yield Farming?
🔹 It is the process of providing liquidity to DeFi protocols in exchange for rewards (interest, tokens, fees)
🔹 It works like a "loan" of your crypto assets to the ecosystem
💡 Where does it happen?
🔸 Liquidity pools in DEXs (e.g., Uniswap, PancakeSwap)
🔸 Lending/borrowing platforms (e.g., Aave, Compound)
🔸 Farms and vaults (e.g., Yearn Finance)
🔢 How it works:
1. You deposit tokens into a pool
2. You receive LP tokens (which represent your share)
3. These LP tokens can be used for additional farming
4. Earn rewards — usually paid in native tokens
⚠️ Common risks:
❌ Impermanent loss (temporary losses due to token price fluctuations)
❌ Risks of bugs or exploits in smart contracts
❌ Variable yield: more supply = less return
✅ Tips for beginners:
🔹 Start with established projects
🔹 Read the protocol documentation
🔹 Use only capital that you are willing to expose to risks
➡️ Yield Farming is like planting crypto seeds: with the right soil and care, it can yield generous harvests.
