Yield Farming

Yield farming deploys capital across DeFi protocols to chase rewards — lending interest, swap fees, token emissions. The strategies can stack (lend, borrow against the deposit, redeploy elsewhere) and the yields are usually denominated in volatile tokens. Most farming yields decay quickly as more capital piles in, which is why farming is a moving target rather than a passive allocation.

See also: DeFi (Decentralized Finance), DEX (Decentralized Exchange), DEX Aggregator.