Yield farming

Yield farming is a practice in decentralized finance (DeFi) where users lock in their cryptocurrency assets (such as Ethereum or stablecoins) into smart contracts to earn rewards, usually in the form of more cryptocurrency tokens. Yield farming can provide higher returns than traditional investment options such as savings accounts or fixed deposits. It also gives investors the ability to participate in governance decisions of DeFi platforms and protocols. Yield farming has become popular due to the booming DeFi industry, which allows for decentralized lending, borrowing, and trading without intermediaries. However, yield farming requires knowledge of the risks associated with the DeFi protocols being used, including smart contract risks and potential vulnerabilities.