Want to make your crypto work for you? Yield farming is a popular way to earn passive income by lending assets to DeFi platforms. Here’s a quick guide to get you started!

So, how does it work?

1. To get started, deposit tokens into a liquidity pool on platforms like PancakeSwap or SushiSwap.
2. Earn rewards, such as trading fees or tokens like $CAKE, in return for providing liquidity.

Top Platforms for Yield Farming

• OKX

Up to 28.5% APY on stablecoins

• PancakeSwap

Earn over 60% APY on BNB/USDT pairs

• Convex Finance

Boost yields on Curve for higher returns

Tips for Beginners

1. Start small by testing a stablecoin pool, which offers a lower-risk way to dip into the world of liquidity provision.
2. Once you’re comfortable, consider using auto-compounders, such as those on Yearn Finance, to automatically reinvest profits and optimize your returns without extra effort.
3. Remember to watch out for impermanent loss — this can occur when token prices fluctuate significantly, potentially impacting your final gains.

Ready to farm smarter? Discover more yield farming strategies and make the most of your crypto with NFT.eu!

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