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Yield farming

Yield farming

Yield farming is where peopl can deposit cryptocurrency in a pool to for investment purposes, often involving earning interest by lending the pooled cryptocurrency.

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Yield farming is a method of earning rewards or interest by depositing 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. Yield farming is risky, with the possibility of losing the entire investment. Yield farms are decentralized finance (DeFi) investment tools that rely on smart contracts.

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