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Yield farming is a process that allows cryptocurrency holders to earn rewards on their crypto holdings. In order to start yield farming, an investor deposits his tokens into a liquidity pool, staking pool or lending protocol to earn interest from trading fees, token rewards and staking rewards. Typically, users are also rewarded with additional (native or non-native) tokens from the yield farming platform.
Decentralized Finance (DeFi) investors earn profit with yield farming by:
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