Bitget App
common_footer.down_desc
common_header.buy_cryptocommon_header.marketscommon_header.tradecommon_header.futurescommon_header.social_tradingcommon_header.grid_tradingcommon_header.earn

category.detail.header_title

category.detail.header_tips2

Yield farming, often referred to as "liquidity mining," is a decentralized finance (DeFi) strategy where users lock up or "stake" their cryptocurrency assets in a smart contract-based protocol to earn rewards. The primary aim is to maximize returns on those assets by leveraging various DeFi platforms. As the DeFi ecosystem has evolved, yield farming has become increasingly sophisticated, with farmers seeking to optimize their returns by hopping between different protocols and strategies. Like all investments, it carries risks, but it offers a way for cryptocurrency holders to earn passive income on their holdings.

category.detail.seemore

list_table_namelist_table_pricelist_table_24h_riselist_table_7d_riselist_table_marketcaplist_table_volumelist_table_supplylist_table_last_24list_table_operation
focusIcon
$7.81----$0$00.00
list_table_trade
focusIcon
Aave
AaveAAVE
$144.1-6.38%-1.04%$2.16B$167.12M14.97M
list_table_trade
focusIcon
Frax
FraxFRAX
$0.9964-0.02%-0.06%$647.09M$20.33M649.43M
focusIcon
$1.75-2.91%-6.38%$485.06M$22.76M276.41M
list_table_trade
focusIcon
$1.39-5.09%-6.89%$455.92M$19.01M327.77M
list_table_trade
focusIcon
$42.84-3.49%-1.50%$376.45M$31.26M8.79M
list_table_trade
focusIcon
WOO
WOOWOO
$0.1848-5.41%-5.20%$339.25M$18.95M1.84B
list_table_trade
focusIcon
$0.2542-1.38%+2.58%$308.69M$69.68M1.21B
list_table_trade
focusIcon
$0.6804-5.91%-6.56%$177.75M$14.63M261.23M
list_table_trade
focusIcon
$4,706.49-4.02%-4.38%$158.00M$20.38M33570.93
list_table_trade
focusIcon
IQ
IQIQ
$0.006030-2.26%-2.47%$117.26M$3.73M19.45B
list_table_trade
focusIcon
JOE
JOEJOE
$0.3051-4.33%-5.16%$113.48M$4.48M371.98M
list_table_trade
focusIcon
$1.85-7.01%-4.84%$112.16M$8.28M60.59M
list_table_trade
focusIcon
$6.59-4.66%-6.45%$108.06M$2.43M16.40M
focusIcon
$0.07178-6.12%-6.69%$89.96M$7.11M1.25B
list_table_trade
focusIcon
Stella
StellaALPHA
$0.06791-4.05%-13.06%$60.85M$6.31M896.00M
list_table_trade
focusIcon
MOBOX
MOBOXMBOX
$0.1532-1.23%-1.34%$60.48M$10.38M394.76M
list_table_trade
focusIcon
$2.86-5.45%-1.88%$58.12M$8.34M20.29M
list_table_trade
focusIcon
$0.9702-4.46%+52.83%$25.37M$1.07M26.15M
focusIcon
$0.05300-6.96%-6.09%$33.43M$1.89M630.65M
list_table_trade
focusIcon
$14.03-3.51%-0.95%$32.99M$1.58M2.35M
list_table_trade
focusIcon
$0.004416-0.81%+13.69%$30.35M$14.61M6.87B
list_table_trade
focusIcon
$0.05527-4.23%-6.52%$28.50M$1.88M515.61M
list_table_trade
focusIcon
$36.13-3.52%-4.92%$26.97M$9,694.87746510.56
focusIcon
$0.1490-2.89%-6.98%$26.56M$1.99M178.26M
list_table_trade
focusIcon
$38.51-5.95%-4.47%$26.46M$815,479.12687053.70
focusIcon
$0.3974+1.71%-0.11%$23.79M$7.02M59.86M
list_table_trade
focusIcon
$0.1545+4.10%+1.27%$23.31M$10.72M150.88M
list_table_trade
focusIcon
$0.1978+6.08%-6.70%$22.83M$5.59M115.39M
list_table_trade
focusIcon
Beefy
BeefyBIFI
$276.77-5.61%-4.31%$22.14M$510,001.1380000.00
focusIcon
$0.003411-3.75%-15.93%$17.83M$2.41M5.23B
list_table_trade
focusIcon
Tarot
TarotTAROT
$0.2430-5.11%-0.38%$15.76M$105,860.5664.87M
focusIcon
$0.01392-5.57%-2.28%$15.07M$231,550.991.08B
focusIcon
$284.08-5.59%-3.23%$13.23M$879.646572.79
focusIcon
$338.55-2.45%-3.46%$13.07M$2.05M38596.00
list_table_trade
focusIcon
Mdex
MdexMDX
$0.01340+0.75%-0.72%$12.73M$233,426.64950.25M
focusIcon
$1.44-3.16%-5.13%$11.38M$1.16M7.91M
list_table_trade
focusIcon
$0.2338-3.66%-0.05%$10.92M$136,490.2546.70M
list_table_trade
focusIcon
ICHI
ICHIICHI
$0.9183-11.59%-14.97%$8.16M$101,694.238.88M
focusIcon
$0.1166+4.55%-16.15%$7.53M$830,471.6864.58M
list_table_trade
focusIcon
$0.06325-9.34%+1.03%$6.95M$230,976.09109.85M
focusIcon
$0.002612-6.00%-21.85%$6.61M$2.47M2.53B
list_table_trade
focusIcon
Nash
NashNEX
$0.1458-2.79%+3.39%$6.20M$2,327.7542.53M
focusIcon
$0.4083+7.34%+194.00%$5.09M$012.47M
list_table_trade
focusIcon
$0.02313-3.84%-9.07%$4.49M$135,260.38194.10M
focusIcon
$0.009173-8.73%+14.13%$4.18M$5.16M455.65M
focusIcon
$1.43+1.73%+60.92%$3.86M$12.812.70M
focusIcon
$0.2699-7.14%+8.10%$2.50M$14,513.229.26M
focusIcon
$0.1909-5.36%-22.56%$2.26M$1,204.6711.85M
category.list.faq

What are the differences between yield farming and staking?

Both yield farming and staking are methods used in the cryptocurrency world to earn rewards by holding onto assets, but they differ in mechanics and purpose. - Yield Farming: Often associated with decentralized finance (DeFi) platforms, yield farming involves providing liquidity, either through lending assets or adding to liquidity pools, to earn rewards typically in the form of tokens. Yield farmers often hop between different protocols to maximize their returns, and the practice can involve complex strategies leveraging multiple platforms. - Staking: This is the act of holding and locking up a cryptocurrency in a wallet to support operations of a blockchain network. These operations can include validating transactions or securing the network. In return for staking their assets, participants receive additional tokens as rewards. Staking is commonly associated with Proof-of-Stake (PoS) and its variants, where the cryptocurrency is held as collateral and might be at risk if malicious actions are taken. In essence, while both practices aim to earn rewards, yield farming focuses on optimizing returns in the DeFi ecosystem, whereas staking is more about supporting and securing a blockchain network.

How do I start yield farming?

To start yield farming, you need cryptocurrency to stake or lend, a wallet like MetaMask to interact with DeFi platforms, and knowledge about various platforms like Uniswap, Compound, and Yearn Finance. Once set up, you can provide liquidity or lend your assets on these platforms to earn yield.

Is yield farming safe?

While yield farming offers the potential for high returns, it comes with risks. These can include smart contract vulnerabilities, impermanent loss for liquidity providers, and volatile APYs. It's crucial to do thorough research, use platforms with a reputable track record, and consider diversifying your investments.

What is APY?

APY stands for Annual Percentage Yield. In yield farming, APY represents the projected annual return on your staked or lent assets. It can fluctuate based on various factors like borrowing demand, liquidity in the pool, and token rewards. The higher the APY, the greater the potential return, but this may also come with increased risks.

Why do APYs in yield farming fluctuate so much?

APYs can be highly volatile due to factors like changing demand for borrowing/lending, fluctuations in the reward token's value, adjustments in platform incentives, and overall market dynamics. As yield farming often operates in decentralized ecosystems, there's a continuous rebalancing between protocols as users chase the best returns.

What is a "rug pull"?

A "rug pull" refers to a malicious act where developers or initial project backers abandon a project and run away with users' funds, typically after hyping up the project and attracting significant liquidity. It underscores the importance of conducting thorough research before entering any new yield farming opportunities.

How can I mitigate risks when participating in yield farming?

To reduce risks, consider diversifying your investments across multiple platforms and strategies. Always do thorough research, use platforms with audited smart contracts, and stay updated with the crypto community's sentiment and reviews on particular projects. Using platforms with a reputable track record and being cautious with too-good-to-be-true yields can also help mitigate potential pitfalls.