👉 Yields computing, also known as yield farming or liquidity mining, is a decentralized finance (DeFi) strategy where users provide liquidity to liquidity pools in cryptocurrency exchanges, earning rewards in the form of transaction fees or additional tokens. This process involves depositing a certain amount of cryptocurrency into a pool, which then uses this capital to facilitate trades between other users. In return, liquidity providers receive a share of the fees generated from these trades or sometimes additional tokens that represent their contribution to the pool's liquidity. The more liquidity a user provides, the higher their potential rewards, incentivizing participation and contributing to the overall liquidity and stability of DeFi protocols. Yields computing has become a popular method for earning passive income in the crypto space, offering higher returns compared to traditional financial investments but also comes with risks such as impermanent loss and smart contract vulnerabilities.
