Yield farming is also referred to as liquidity mining. It is a way to generate rewards with cryptocurrency holdings. In simple terms, yield farming means locking up cryptocurrencies and getting rewards.
In other words, users can lend or borrow crypto (tokens) on a DeFi platform facilitated by smart contracts and speculate on price swings or earn interest in return for their services.
Types of yield farming:
— Liquidity provider
— Staking Which one of the following statements is true? — Yield farming describes the process of token holders generating income via DeFi platforms
— Yield farming isn't risky. It cannot be affected by price volatility and rug pulls
— Yield farmers don't need decentralized apps to earn interest and speculate on price swings