Yield Farming and Staking in Decentralized Finance (DeFi)
Yield Farming and Staking in Decentralized Finance (DeFi) What is Decentralized Finance (DeFi)? Decentralized Finance, or DeFi , refers to a financial ecosystem built on blockchain technology, primarily Ethereum. Instead of relying on traditional banks or financial institutions, DeFi uses smart contracts —self-executing code—to provide financial services like lending, borrowing, trading, and earning interest. The key benefit? No middlemen . You control your assets at all times. The Origins of DeFi DeFi started gaining momentum in 2018, but it really took off in 2020—often called "DeFi Summer." Platforms like Compound , MakerDAO , Aave , and Uniswap opened the floodgates for users to interact with decentralized applications (dApps) and earn rewards by providing liquidity or staking tokens. The idea was simple: if banks can profit from your money, why can’t you? Yield Farming Explained 🔍 What is Yield Farming? (In Detail) Yield farming is a way to earn passive incom...