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
Algorithm
Algorithm is a set of rules to follow to solve a problem or conduct a task.
Encryption
In cryptography, encryption is a process of encoding information the original form of information called plaintext via an algorithm called cipher. The encrypted message is now called ciphertext. Only authorized parties can decipher the ciphertext and convert back it to the original plaintext.
Buy/Sell Tax
On-chain buy or sell tax rate where a percentage of the tokens bought/sold will be transferred to a set address.
Rug Pull
Sudden removal of liquidity which typically leads to asset prices crashing from the lack of liquidity to absorb buy/sells.
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