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In yield farming, a yearly percentage yield (APY) is used to measure returns on investments. Yield farming tends to have much higher returns due to a protocol's high need for liquidity. However, as you would expect, higher returns come with increased risk. Decentralized lending protocols enable cryptocurrency holders to access their holdings without selling their assets and facing taxes. Liquidity pools are an additional option for investors to earn interest on their crypto in the yield farming ecosystem. Investors can deposit crypto into decentralized exchanges to earn a percentage of the fees generated.