Yield Farming
DeFi yield maximization strategy by moving between protocols.
Yield farming: stake/lend/LP/claim/swap/repeat. Hunt highest APY (new protocols 100%+ first weeks), enter, collect, exit when APY drops. Requires active management, smart contract knowledge, gas optimization. Real yield ≠ APY (subtract IL, gas, hack risk). 'DeFi summer' 2020: 1000%+ APYs.
In plain words
Actively chasing the highest DeFi rewards. Today you stake in one protocol, tomorrow you move to another with better APY. Requires constant attention and knowing the risks (smart contract bugs, impermanent loss, gas fees). 'Real' yield isn't just headline APY, you must subtract all costs and risks.
Example
DeFi summer 2020: Compound COMP airdrop, 100%+ APY on USDC lending. SushiSwap 'vampire attack' Uniswap: 1000% APY first 2 weeks. 2025 civilized: Pendle PT 15% on ETH staking, Hyperliquid HLP 30% on DEX market making.
Also known as: yield farming, liquidity mining, farming