Types of Yield Farming

As explained in the Yield Farming post , it's a popular way to earn passive income in the crypto space. Here are the main types of it:

▪️Liquidity providing: One of the most common types of yield farming involves providing liquidity to decentralized exchanges (DEXs) or lending platforms.

By adding your tokens to a liquidity pool, you help facilitate trades on the platform, and in return, you earn a portion of the trading fees and other rewards.

▪️Staking: Another popular method is staking, where you lock up your tokens in a smart contract to support the network's operations. In exchange for staking your tokens, you receive rewards, typically in the form of additional tokens.

▪️Lending: Yield farming also includes lending your cryptocurrencies through decentralized lending platforms. By lending your tokens, you earn interest on the amount you lend out, allowing you to generate passive income on your holdings.$BTC $BNB