Yield farming allows investors to earn high returns by providing liquidity to DeFi platforms. This article explains how yield farming works, its risks, and the strategies involved.
What Is Yield Farming?: Define yield farming as the process of staking or lending crypto assets to a DeFi platform in exchange for rewards. Investors move their funds across platforms to maximize returns.
Popular Yield Farming Platforms: Highlight major platforms like Aave, Compound, and SushiSwap, where users can stake their assets in liquidity pools and earn tokens.
Risks of Yield Farming: Discuss the high-risk nature of yield farming, including impermanent loss, smart contract vulnerabilities, and volatile asset prices.
