What Is Yield farming?
Yield farming is a passive trading strategy in decentralised finance.
Usually yield farming strategies rely on onchain liquidity pools and liquidity mining token distributions, which where any tokens are immediately sold. Strategies can be auto-compounding.
Yield farms operate solely on smart contracts and their strategies are limited. Often yield is not real yield.
Yield farms almost always aim for risk-free rate against their quote token.
See also