What Is Yield Farming?

Yield farming is a DeFi strategy where users deposit crypto into liquidity pools or lending protocols to earn returns. Yield farmers earn fees from trading activity (on DEXs) or interest from borrowers (on lending platforms). Whale yield farming activity is visible on-chain when large wallets deposit significant sums into DeFi protocols, which Sonar classifies as DEFI transactions.

Related Terms

DeFi (Decentralized Finance)LiquiditySmart ContractDEX (Decentralized Exchange)

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