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Yield Farming
Yield farming is the process of users trying to maximize a rate of return on capital through leveraging different DeFi protocols. DeFi platforms such as Uniswap or PancakeSwap, offer users the ability to stake their funds in liquidity pools and in return get paid according to an APY (annualized percentage yield). Through the process of liquidity mining users are able to generate an income based upon how much liquidity they have provided, the price of each token and the APY.
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