Yield farming
Using crypto positions or protocols to seek returns from interest, fees or incentives.
In more detail
Yield farming can mean supplying liquidity, lending assets or moving between reward programs. The displayed percentage is only a starting point: rewards may change, token prices can move and the position may carry costs or losses. Understand where the return comes from and what happens to the deposited assets before comparing headline numbers.
How you might use it
A farm advertises token rewards, so you compare their changing value and the underlying LP position rather than looking only at the displayed APR.
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