Solena
  • Solena DEX
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    • Stake
    • Farm
    • Launchpad
  • What is Staking?
    • How Staking Works
    • Fixed Staking
    • Liquid Staking
    • Yield Farming
    • Summary
  • FAQ
    • What is Solena AI Exchange?
    • Why did my transaction fail?
    • What is price impact?
    • What is a Permissionless Pool?
    • How do I earn yield from liquidity provider fees on Solena AI Exchange?
    • What are LP tokens?
    • Can I withdraw my liquidity anytime?
    • How are projected earnings and APY calculated?
    • How to swap Tron to SOL
  • Security and Privacy
    • How is my data protected?
    • Is my data shared with third parties?
  • Downloads
    • Whitepaper
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  1. What is Staking?

Yield Farming

Yield Farming, also known as Liquidity Mining, refers to the process where users provide their cryptocurrencies to DeFi protocols to earn high yields. The key points are:

  • Liquidity Pools: Users provide their cryptocurrencies to liquidity pools utilized by DeFi protocols such as Uniswap, Aave, or Compound.

  • Rewards: In return, they receive rewards in the form of additional cryptocurrencies or platform tokens.

  • Risks: While yield farming can be highly lucrative, it also carries high risks, including smart contract security vulnerabilities, impermanent loss, and market volatility.

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Last updated 11 months ago