All terms
Moving capital between protocols to chase the highest available return.
Yield farming means depositing assets wherever the incentives are richest, often collecting a protocol's own token as a reward on top of trading fees.
High advertised yields usually come from token emissions rather than real revenue. When emissions stop or the reward token falls, the yield evaporates and often the principal has shrunk too.
A 400 percent APY paid in a new token is a marketing number. Ask what it is worth after everyone else sells the same reward.
That the highest advertised yield is the best opportunity. Yield is compensation for risk, so the highest number on the page usually marks the riskiest contract, the least proven team or the fastest emission. The number is a warning label as often as an offer.
Common questions
Where does the yield actually come from?
Are high yields a red flag?
Where this comes up on the site
The guides that actually use this word, rather than a list of everything we have written.
Where to go next
More defi terms
Want this explained out loud?
Some of these land faster in conversation than in writing. Sessions are one to one and you can ask anything, including the things that feel too obvious to ask.