Yield Farming
By CoinGecko | Updated on Aug 13, 2021
Yield farming involves putting cryptocurrency into a DeFi protocol to collect interest on trading fees. Liquidity providers can profit by providing liquidity in DeFi protocols like Uniswap, utilizing assets that would otherwise sit idle on an exchange or hot wallet.
Related Terms
MicroBitcoin (uBTC)
One millionth of a bitcoin or 0.000001 of a bitcoin. Microbitcoin is the abbreviation of uBTC and often misunderstood as the fork of Bitcoin.
Proof of Stake (PoS)
A consensus algorthm that assigns block validation queue based on the coins/token locked in by the validator.
Microtransaction
Microtransaction is a system that made very small payments possible in buying the common digital goods and services, such as purchasing items in a game.
Yield Farming
Yield farming involves putting cryptocurrency into a DeFi protocol to collect interest on trading fees.
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