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Yield farming is also referred to as “liquidity mining” and is one of the most popular methods to earn passive income. By using various decentralized finance (DeFi) protocols, users can lock-up i.e. stake their cryptocurrencies on the platform to earn the protocol’s native coins and tokens. These coins and tokens have various uses on the protocol, but their most lucrative feature is that it can be traded on cryptocurrency exchanges. This makes yield farming a great way for cryptocurrency traders to earn passive income.
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