Yield farming refers to the practice of earning interest or rewards on cryptocurrency assets held in a specific type of wallet or smart contract. This can be done by providing liquidity to decentralized finance (DeFi) protocols, participating in staking pools, or other forms of passive income generation within the cryptocurrency space. The specific details of yield farming can vary greatly, but the underlying principle is to earn rewards for passively holding or providing liquidity to certain cryptocurrencies or DeFi protocols. These rewards are typically paid out in the form of new tokens or interest on the original assets.
