{"id":"yield-farming","title":"Yield Farming","content":"**Yield farming** is a [DeFi](https://iq.wiki/wiki/defi-dad) (decentralized finance) term for leveraging DeFi protocols and products to generate high returns that sometimes reach over 100% in annualized yields 'when factoring in interest, token rewards, \"cashback\" bonuses, and other incentives.'[\\[1\\]](#cite-id-oc0oozrep4i)<br>[\\[2\\]](#cite-id-dq8rmmy5m67)<br>\n\nYield farming is a way for cryptocurrency enthusiasts to maximize their returns. It typically involves users lending or locking up their funds using smart contracts. In return, users earn fees in the form of crypto.\n\nThe term originated in the summer of 2020. In [cryptocurrency](https://iq.wiki/wiki/cryptocurrency), users who participate in yield farming are known as \"farmers\".[\\[3\\]](#cite-id-0nnpuphjksal)<br>\n\n# Introduction\n\nYield farming is the practice of trying to acquire the best yield from DeFi products and protocols. As a result, various cryptocurrencies have seen a massive jump in price.\n\nCrypto lenders including Genesis have seen a rise in [stablecoin](https://iq.wiki/wiki/stablecoin) borrow rates, specifically within short-term [stablecoin](https://iq.wiki/wiki/stablecoin) and [ERC-20](https://iq.wiki/wiki/erc-20) rates.\n\n# Popular Yield Farming Protocols\n\n### COMP Farming\n\n\"Farmers\" have been buying into Compound (COMP), an [Ethereum](https://iq.wiki/wiki/ethereum-classic) (ERC-20) digital asset that powers the Compound protocol. In order to acquire a yield on Compound, the user must deposit collateral, which can be in Ether (ETH) or any ERC-20 token that [Compound](https://iq.wiki/wiki/compound) supports. 2,880 COMP are distributed daily, proportional to the amount of assets the have locked up on the platform.\n\nThere are even third-party projects that facilitate COMP farming like the smart wallet project InstaDApp, which unveiled a “Maximize $COMP mining” Widget. It allows users to borrow and deposit assets simultaneously in order to get more COMP.\n\n# BAL Farming\n\n<br>[Balancer](https://iq.wiki/wiki/balancer) is a platform that lets users create liquidity pools composed of multiple ERC20 tokens. It was inspired by the Uniswap protocol which supports 1:1 pools. In June of 2020, the Balancer team started a liquidity mining campaign.145,000 BAL is distributed to people who put funds on the platform every week.[\\[4\\]](#cite-id-5dndapkvp8d)<br>\n\n### Curve-Ren-Synthetix Farming Meld\n\nUsers who provide WBTC, renBTC, and sBTC liquidity to the BTC Curve liquidity pool will earn BAL, SNX, REN, and CRV. This is possible because Synthetix and Ren created a Balancer pool composed of SNX and REN tokens. This liquidity mining generates BAL, as well as liquidity provider (LP) rewards in the form of BPT, a wrapped combination of SNX and REN.\n\n# Memes\n\nThe boom in yield farming has spawned vast amounts of memes around the internet.[\\[5\\]](#cite-id-zwnmwhojvi)<br>\n\n<br>","summary":"Yield farming is a DeFi term for leveraging DeFi protocols and products to generate high ","images":[{"id":"QmPx7Bs77s6D6s7LmEwWn9N4tWZN6mTnnQ4KYN3YYteMxZ","type":"image/jpeg, image/png"}],"categories":[{"id":"glossary","title":"glossary"}],"tags":[],"media":[{"id":"QmXXVcZAqearSnfV45U2qptCXKxcoypHuxwWTff4RNUbe6","size":"0.007","name":"images.jpg","type":null,"source":"IPFS_IMG"},{"id":"QmRyFGZq5qNiiDSC4yAoeFdr3jivcbEDSDkVuPVzStM1FV","size":"0.011","name":"index.jpg","type":null,"source":"IPFS_IMG"},{"id":"QmaaLDgVb3yM5hC1iTua6B3cuoVjpRPyfovoDFs5qGm1KG","size":"0.037","name":"What-is-Yield-Farming-Article-Website-800x500.jpg","type":null,"source":"IPFS_IMG"},{"id":"QmRkDatuPNuvfTAdve68n4yDnCUzcmsBAmtCnsDPphpLdB","size":"0.062","name":"what-is-yield-farming-main-1600.jpg","type":null,"source":"IPFS_IMG"},{"id":"QmNMF4aTDTzXMSmmfJEtHbXWPQNyHU4ztdDhh2WjedS9Lq","size":"0.345","name":"YieldFarming_FeatureImage-1.png","type":null,"source":"IPFS_IMG"}],"metadata":[{"id":"references","value":"[{\"id\":\"oc0oozrep4i\",\"url\":\"https://coinmarketcap.com/alexandria/article/what-is-yield-farming\",\"description\":\"coinarket\",\"timestamp\":1660906839457},{\"id\":\"dq8rmmy5m67\",\"url\":\"https://academy.binance.com/en/articles/what-is-yield-farming-in-decentralized-finance-defi\",\"description\":\"Info\",\"timestamp\":1660906878933},{\"id\":\"0nnpuphjksal\",\"url\":\"https://academy.binance.com/en/articles/what-is-yield-farming-in-decentralized-finance-defi\",\"description\":\"DEFI\",\"timestamp\":1660906941085},{\"id\":\"5dndapkvp8d\",\"url\":\"https://www.coindesk.com/defi-yield-farming-comp-token-explained#:~:text=Broadly%2C%20yield%20farming%20is%20any,APY%20from%20week%20to%20week.\",\"description\":\"BAL Farming\",\"timestamp\":1660907056414},{\"id\":\"zwnmwhojvi\",\"url\":\"https://www.youtube.com/watch?v=fGxTwm-rf1s\",\"description\":\"Overview\",\"timestamp\":1660907562182}]"},{"id":"website","value":"https://coinmarketcap.com/alexandria/article/what-is-yield-farming"},{"id":"previous_cid","value":"\"https://ipfs.everipedia.org/ipfs/QmUiyzwAitneTXNnPuJ8YRoQDHn2XTVKM6wMDbSMK19M71\""},{"id":"commit-message","value":"\"Removed yield farming content and replaced DeFi id with glossary\""},{"id":"previous_cid","value":"QmUiyzwAitneTXNnPuJ8YRoQDHn2XTVKM6wMDbSMK19M71"}],"events":[],"user":{"id":"0x8af7a19a26d8fbc48defb35aefb15ec8c407f889"},"author":{"id":"0x2fE6aCD015384E1ee5138eF79fe1a434dA8FA12e"},"operator":{"id":"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138"},"language":"en","version":1,"linkedWikis":{"blockchains":[],"founders":[],"speakers":[]},"recentActivity":"{\"items\":[{\"id\":\"71c1722d-739d-4c85-b37d-b69eae207b34\",\"title\":\"Yield Farming\",\"description\":\"Yield farming is a DeFi term for leveraging DeFi protocols and products to generate high \",\"timestamp\":\"2026-06-04T01:25:39.224Z\",\"category\":\"glossary\",\"status\":{\"icon\":\"RiGlobalLine\",\"label\":\"Wiki Updated\",\"iconClassName\":\"text-green-500\"},\"user\":{\"name\":\"0x2fE6aCD015384E1ee5138eF79fe1a434dA8FA12e\",\"address\":\"0x1E23b34d3106F0C1c74D17f2Cd0F65cdb039b138\"},\"button\":{\"label\":\"View Summary\",\"icon\":\"RiFileTextLine\"},\"summarySections\":[{\"title\":\"Linked Wikis\",\"subtitle\":\"One linked wiki removed and a different linked wiki added\",\"variant\":\"modified\",\"changeCount\":2,\"changes\":[\"Removed linked wiki with id \\\"defi\\\" and title \\\"Decentralized Finance\\\"\",\"Added linked wiki with id \\\"glossary\\\" and title \\\"glossary\\\"\"]},{\"title\":\"Tags\",\"subtitle\":\"Tag entries changed; tags array replaced/cleared\",\"variant\":\"modified\",\"changeCount\":2,\"changes\":[\"Removed tag with id \\\"Glossary\\\"\",\"Tags array set to [] (now empty)\"]},{\"title\":\"Metadata\",\"subtitle\":\"New metadata entries were added\",\"variant\":\"added\",\"changeCount\":4,\"changes\":[\"Added metadata entry id \\\"words-changed\\\" with value \\\"23\\\"\",\"Added metadata entry id \\\"percent-changed\\\" with value \\\"5.42\\\"\",\"Added metadata entry id \\\"blocks-changed\\\" with value \\\"content, tags\\\"\",\"Added metadata entry id \\\"wiki-score\\\" with value \\\"61\\\"\"]},{\"title\":\"Speakers\",\"subtitle\":\"The speakers field was removed\",\"variant\":\"removed\",\"changeCount\":1,\"changes\":[\"Removed field \\\"speakers\\\" which was an empty array: []\"]}]}]}"}