What is DeFi yield farming?

What Is DeFi Yield Farming?

Yield farming in DeFi means putting your crypto to work (e.g. lending, providing liquidity, staking LP tokens) to earn more crypto. Returns can be high but come with smart contract risk, impermanent loss, and token volatility. Only use well-audited protocols and amounts you can afford to lose. In India, farmed rewards and gains are generally taxable. Keep records of deposits, rewards, and withdrawals.