Yield farming is a way for token holders to increase their returns by earning interest or fees on the tokens that they own.
There are several types of yield farming
- Liquidity: Lending coins to a DEX to provide liquidity
- Lending: A Loan managed through a smart contract
- Borrowing: Using one token to borrow another that can be used for yield farming
- Staking: Using tokens in a proof-of-stake blockchain
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