Yield Farming in DeFi is a feature that allows market participants to lend their crypto assets to other market participants. The process involves lending your funds to borrowers using smart contracts and through this, you earn fees on funds loaned out in cryptocurrency. In the DAO ecosystem, you will receive rewards in the native DAO1 tokens.
Through yield farming, investors can earn passive income through DeFi. Investors are empowered to put their digital assets to good use and holding is no longer the only option. A specific portion of the total token supply of DAO1 will go into DAO1 Farm on our Decentralized Exchange (DEX) to take advantage of the available liquidity pools.
Yield farming allows market participants to earn returns based on liquidity providers (LP) and the trading pair will predominantly be DAO1/ETH.