2min chapter

Clearer Thinking with Spencer Greenberg cover image

The FTX catastrophe (with Byrne Hobart, Vipul Naik, Maomao Hu, Marcus Abramovich, and Ozzie Gooen)

Clearer Thinking with Spencer Greenberg

CHAPTER

What Is Yield Farming?

Yield farming is a method of earning rewards or interest by depositing your cryptocurrency into a pool with other users. The pooled funds are used to carry out smart contracts such as cryptocurrency lending that generates interest in return. With yield farming, users stake their currency, the cryptocurrency equivalent of making a deposit, with others investing in the same farm. Staking may require you to leave your funds invested for a specific period. Your cryptocurrency may then be used as collateral or to provide liquidity to mining pools depending on how it is invested. August 26, 2022. April 22, 2021.

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