Yield Farming

In the world of Decentralized Finance (DeFi) Yield Farming refers to the practice of placing crypto assets you own into smart contracts to collect interest. Similar to how a person can earn interest by placing funds into an interest bearing checking account at a bank, Yield Farmers stake their cryptocurrency into a managed smart contract and then collect yield. Yield farming interest rates can be extremely high, often several multiples higher than basic checking accounts APY. With high rates of return comes very real risk. In the world of DeFi and Yield Farming large hacks are commonplace where millions of dollars worth of crypto can instantly disappear from hacked protocols and smart contracts.