# Yield Farming

> Moving crypto between DeFi apps to earn the highest rewards. Higher yields usually mean higher risk.

Canonical URL: https://fudfomo.co/glossary/yield-farming
Source: What The Block! Dictionary v1.0 (last updated 2026-04-25), browsable at https://wtb.fudfomo.co.

## Definition

Yield farming is the practice of moving your tokens between different DeFi protocols to chase the best returns. Rewards can come from trading fees, lending interest, or extra tokens handed out by the protocol.

Very high advertised yields often come from new and risky tokens, smart contract exposure, or short-lived incentive programmes. Headline numbers rarely tell the whole story.

## Related terms

- [DeFi](https://fudfomo.co/glossary/defi): Decentralised finance. Apps that offer lending, trading, and saving on a blockchain instead of through a bank.
- [Liquidity Pool](https://fudfomo.co/glossary/liquidity-pool): A shared pot of two tokens that lets people trade between them on a decentralised exchange.
- [Tokenomics](https://fudfomo.co/glossary/tokenomics): The economic design of a token: total supply, how it is distributed, and how it changes over time.

## See the full catalogue

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