Understanding Yield Farming & Liquidity Pools in Blockchain Yield farming and liquidity pools are key concepts in the world of blockchain and decentralized finance (DeFi). In simple terms, yield farming refers to the practice of utilizing cryptocurrency holdings to earn additional tokens or rewards. Liquidity pools, on the other hand, are pools of funds provided by users to facilitate trading and lending on decentralized platforms. By understanding these concepts, investors can make informed decisions and maximize their returns in the fast-evolving blockchain ecosystem.
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