Crypto Abecedarium
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Yield Farming: Yield farming is a practice in decentralized finance (DeFi) where cryptocurrency holders can earn rewards by providing liquidity to a liquidity pool or by participating in other DeFi activities. Participants receive yields in the form of additional tokens or interest.
Yield: Yield generally refers to the returns generated from an investment. In the context of DeFi and crypto, it specifically relates to the interest or rewards earned by participants for locking up their funds in various decentralized protocols.
Yield aggregator: in the context of decentralized finance (DeFi) refers to a platform or protocol that optimizes and maximizes the returns (yields) for users who provide liquidity to various DeFi protocols. Yield aggregators automate the process of seeking the highest yields available across different decentralized platforms, saving users the effort of manually managing their assets.