What is yield farming🤔
Yield farming is a process that allows cryptocurrency holders to lock up their holdings, which in turn provides them with rewards. So, it is a way of earning cryptocurrency using the ones you already have. It is assumed that you lend your funds to other users through special computer programs — smart contracts. For the provision of services, you receive a commission in cryptocurrency. Seems simple? Not really. ☝
👉Farmers need to use very complex strategies. they constantly move cryptocurrency between different lending platforms to maximize profits. It should be understood that farmers keep the most profitable strategies in strict confidence. Why? The more people know about a strategy, the less effective it will work. Profitable farming is the Wild West of Decentralized Finance (DeFi), where farmers compete for the best harvest.
✅ — Yield farming lets you lock up funds, providing rewards in the process.
✅ — It involves lending out cryptos via DeFi protocols in order to earn fixed or variable interest.
✅ — The rewards can be far greater than traditional investments, but higher rewards bring higher risks, especially in such a volatile market.
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