@trick
Yield farming is a DeFi strategy where users provide liquidity to decentralized protocols in exchange for rewards, often in the form of the platform’s native tokens. This is typically done by supplying assets to liquidity pools or lending them on platforms, and in return, users earn interest, trading fees, or governance tokens. The idea is to maximize returns by optimizing the assets deployed across different protocols or platforms. While yield farming can offer high rewards, it also carries risks such as impermanent loss, platform vulnerabilities, and changes in protocol rules. It’s essential to carefully assess the risks before engaging in yield farming.
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