Yield Farming
defiadvanced
Definition
The practice of moving capital between DeFi protocols to maximize returns, often by combining lending yields with governance token rewards. Popularized during 'DeFi Summer' 2020.
Example
A farmer might deposit USDC into Aave (earning 5% interest), borrow ETH against it, stake that ETH for 4% APR, and claim additional governance tokens — a composite strategy yielding 15%+.