When you put your money in a traditional savings account, the bank pays you interest.
In the world of cryptocurrency, there’s a similar way to earn returns — it’s called yield farming
What is yield farming in crypto? Yield farming in crypto is a way to earn rewards by putting your cryptocurrency to work on a DeFi platform rather than leaving it sitting idle in a crypto wallet. In practice, this can happen in several ways.
You might offer your crypto to help support a blockchain network, lend it to other users through a decentralized platform, or deposit it into a liquidity pool that helps power trading. In return for contributing your crypto, the platform may reward you with a share of transaction fees paid by traders or with newly issued coins. In many cases, the rewards you earn are proportional to the size of your contribution.