What Does "Farm" Mean in Crypto?
In the world of cryptocurrency, "Farm" refers to yield farming—a method of earning rewards by locking your crypto into a DeFi (decentralized finance) platform. Think of it as putting your crypto to work, similar to earning interest in a savings account, but with potentially higher returns.
In yield farming, users provide liquidity—usually in pairs like BNB/USDT—to decentralized exchanges (DEXs) such as PancakeSwap or Uniswap. In return, they receive rewards in the form of tokens, which can be reinvested or traded. These rewards often come from trading fees or incentive programs.
Yield farming gained popularity during the DeFi boom of 2020 and continues to attract users looking for passive income. However, it's not risk-free—volatility, impermanent loss, and smart contract vulnerabilities can lead to losses.
Many platforms, including those on Binance Smart Chain (BSC), offer farming opportunities with competitive returns. Always research the project, tokenomics, and risks before farming.
In short: farming lets you "plant" your crypto and potentially "harvest" more over time.
