Written by Dana Sanchez

yield farming
What Is Leveraged Crypto Yield Farming And Why Could It Act Like The Carry Trade Blowups? Image: iStock

Yield farming is the Wild West of decentralized finance, an increasingly popular way of using your crypto to make more crypto by lending your funds to others through computer programs called smart contracts in return for fees in the form of crypto.

Also called liquidy mining, yield farming involves staking or locking up cryptocurrencies in return for rewards. It’s not for amateurs. Yield farmers use very complicated strategies and are secretive about it, according to Binance Academy, a blockchain and cryptocurrency education portal from the Binance crypto exchange.

The popularity of yield farming has been compared to the initial coin offerings boom of 2017. Per the laws of supply and demand, users flock to each new project that offers new tokens or ways to earn rewards, hoping to get a piece of the pie. In