Web Trader MT5
Yield farming involves placing cryptoassets into decentralised finance protocols to earn interest, trading fees, or reward tokens. The assets may be supplied to a lending market, added to a liquidity pool, or moved between protocols offering different returns.
A user may deposit $1,000 of each of two tokens into a liquidity pool and receive a share of the trading fees. The position’s value will still change as the two token prices move.
The final result depends on several moving parts: fees earned, token rewards, price changes, smart-contract security, and possible impermanent loss. Two farms showing the same annual percentage yield can therefore produce very different outcomes.
