1/6 🌾
Yield farming is a DeFi strategy where crypto holders earn passive income by providing liquidity to decentralised platforms and earning rewards #DeFi #ningenie #ninx
2/6 🔗
Users deposit cryptocurrencies into liquidity pools that allow others to trade, borrow, or lend digital assets within the DeFi ecosystem #Blockchain #ningenie #ninx
3/6 🤖
Smart contracts automate the process — managing deposits, executing transactions, and distributing rewards without central authorities #SmartContracts #ningenie #ninx
4/6 💰
Rewards may include interest, trading fees, or additional governance tokens depending on the protocol and liquidity pool #CryptoRewards #ningenie #ninx
5/6 📊
Returns are often measured using APY (Annual Percentage Yield), which estimates the potential yearly earnings including compound rewards #CryptoInvesting #ningenie #ninx
6/6 ⚠️
Yield farming can offer high returns but carries risks such as market volatility, smart contract bugs, and impermanent loss #CryptoRisk #ningenie #ninx
