Glossary
Yield Farming
Chasing the best returns by moving capital between DeFi protocols.
Yield farming means chasing the best returns by moving capital between DeFi protocols — lending here, providing liquidity there, claiming and compounding rewards.
It is a real skill with real risks: contract exploits, impermanent loss, token emissions that collapse, and the cost of every transaction along the way. The headline APY almost never survives contact with all four.
Related terms
Airdrop
Free tokens distributed to wallet addresses, usually to reward early users of a protocol.
AMM
Automated Market Maker — a protocol that prices assets with a formula instead of an order book.
APR vs APY
APR is the yearly rate without compounding; APY includes compounding and is always higher.
ATH
All-Time High — the highest price an asset has ever traded at.
Bear Market
A prolonged decline, conventionally 20% or more from recent highs.
Bull Market
A prolonged rise driven by new demand, easy credit and rising confidence.