For Customers Log in
Contact Us

Yield Farming Meaning

Yield farming, also known as liquidity mining, involves allocating cryptocurrency to decentralised finance (DeFi) protocols in order to earn rewards such as interest, fees, or new tokens. Yield farmers strategically move their assets between lending platforms, liquidity pools, and staking programs to capture the highest yields.

These strategies may involve supplying liquidity to automated market makers (AMMs), lending assets on money markets, or participating in governance token distribution schemes. Yield farming can be lucrative but carries risks, including smart contract vulnerabilities, impermanent loss, and market volatility.

It often requires active management and a deep understanding of protocol mechanics.

← Back to Glossary

Explore our services
Providing liquidity in the cryptocurrency market?
Authorize on our platform and do it smarter with FM Pulse.
pic

FM Marketplace

A reliable and high-performance crypto liquidity marketplace for institutions and businesses.

Learn more
pic

FM White Label

Launch your fully branded B2B crypto trading platform in under one week.

Learn more
pic

FM Liquidity Match

Crypto OTC-as-a-Service infrastructure for enhanced monetization and trade control.

Learn more

Scale your business, leave the hard work of your trading needs to us

Reduce your integration costs and operational risk across multiple access points with our platform

Get started