Previous Module
Arbitrage Opportunity Game

🌾 Yield Farming Simulator

Maximize returns by strategically moving liquidity

🌾 Yield Farming: Maximize Your Returns

Learn how to earn passive income from DeFi liquidity pools

Yield farming is the practice of staking or lending crypto assets to generate high returns or rewards in the form of additional cryptocurrency. It's become the backbone of DeFi, offering opportunities for passive income.

What is Yield Farming?

Think of yield farming as putting your crypto to work. Instead of holding assets idle in a wallet, you deposit them into liquidity pools on DeFi protocols. In return, you earn:

💰

Trading Fees

A share of fees from users who trade against your liquidity pool

🎁

Token Rewards

Additional tokens distributed by the protocol as incentives

🎮 Interactive: Farming Rewards Calculator

Calculate potential returns from yield farming:

$1,000$100,000
5%200%
7 days365 days

Projected Earnings

Initial Deposit:$10,000
Daily Rewards:$12.33
Total Rewards (365 days):+$4,500.00
Final Balance:$14,500.00
💡 Note
This is a simplified calculation. Actual yields vary based on pool performance, compounding frequency, and market conditions.

How Yield Farming Works

1️⃣

Deposit Assets

Add your tokens to a liquidity pool on a DeFi protocol like Uniswap, SushiSwap, or PancakeSwap.

2️⃣

Earn Rewards

Receive a share of trading fees plus additional token rewards distributed by the protocol.

3️⃣

Compound or Withdraw

Reinvest rewards to compound returns, or withdraw your principal plus earnings anytime.

Key Concepts You'll Learn

💧

Liquidity Pools

How pools work, providing liquidity, and understanding LP tokens

📊

APY vs APR

Understanding returns, compounding effects, and realistic yield expectations

🎯

Farming Strategies

Single-asset staking, LP farming, auto-compounding vaults, and risk management

⚠️

Risks & Security

Impermanent loss, smart contract risks, rug pulls, and how to protect yourself