In traditional finance, you might put your money in a savings account to earn interest. DeFi is a similar concept, but it uses blockchain technology and cryptocurrencies instead of banks. It gives you more control and transparency over your assets.
Yield farming is a key part of DeFi. It's the process of putting your cryptocurrency to work by providing assets to a decentralized exchange (DEX). These assets are used to facilitate trading, and in return, you can earn rewards like trading fees and new tokens. It's a way to generate returns on your crypto holdings, similar to earning interest but often with different levels of potential return.
