What is Yield farming?

Definition

Yield farming means moving capital between protocols to capture the highest available return, often boosted by token incentives rather than by underlying fee revenue.

In practice

Advertised rates usually combine real trading fees with temporary token emissions, and the emissions part disappears when a programme ends. Stacking positions across protocols also stacks their smart-contract risk. Separating fee yield from incentive yield is the basic skill here.

Yield farming on Dapping

Related terms