6. DeFi Yield Farming
Yield farming is an umbrella term covering all DeFi sector yield opportunities. It includes lending and liquidity mining on DEXs, but there is more to it.
Yield farming is a DeFi strategy aiming for the best market yields across multiple decentralized apps (dapps). Typically, yield farming involves depositing tokens on DeFi apps, including yield protocols, lending apps, and DEXs, and earning rewards in governance or other types of tokens.
Some DeFi apps, such as Convex, Pendle, Yearn Finance, or Aura, specialize in yield opportunities. These apps pay users rewards for staking or locking tokens on their platforms.
Some dapps, like Synthetix, pay rewards for staking LP tokens of other dapps on their smart contracts.
