Yield Farming in DeFi: How Does It Work?
Too Long; Didn't Read
Decentralized Finance (or simply DeFi) and yield farming becoming mainstream with its applications in the crypto world. With the surge of $4 billion total value locked (TVL) in DeFi, this ecosystem’s development is nothing but viable. Yield farming involves depositing and lending crypto underlying a mining mechanism to liquidate the liquidity pool for lucrative rewards. The emergence of the DeFi Compound (COMP) and Aave is what gave rise to yield farming.