In crypto investing, yield farming has become an outlet for investors to search for outsized returns on investment.
Yield farmers scour decentralized protocols in search of the highest yields on their money, sometimes as much as 100% APY. Yield farmers either provide liquidity or stake tokens to a network and receive returns for their actions.
However, yield farmers do take risks, and their funds can be lost in the process of yield farming.
“What are you doing with your ETH these days?”
“I’m yield farming on Yearn and making 25% on my investment. You should try it.”