Yield farming is a method of generating extra cryptocurrency with your existing cryptocurrency
Yield farming has quickly become one of the more-popular methods of how people earn a passive income with their crypto
Yield farming, also known as liquidity mining, is a method of generating rewards from crypto assets. In layman's terms, it implies storing cryptocurrency and receiving rewards
Types of Yield Farming
There are different types of yield farming that you could participate in
Crypto Lending and Borrowing
There are multiple decentralized finance projects that allow crypto fans to both borrow cryptocurrencies, as well as lend them
Providing liquidity
Liquidity providers are people that provide their money to decentralized cryptocurrency exchanges and receive passive returns for doing so
STAKING
You have some crypto currencies that you are providing to a specific platform in order to generate passive returns
Redistribution fees
When you trade in cryptocurrency a portion of the transaction fees are taken
Aave is one of the most popular stablecoin yield farming platforms, with over $14 billion in value locked up and a market capitalization of more than $3.4 billion
To Know more about Yield Farming and its work process, please check out our full Article Link below.