Farming is a way to earn additional rewards by depositing your LP tokens into a dedicated rewards contract. Instead of just earning swap fees from the liquidity pool, you receive extra incentive tokens on top. When you stake your LP tokens in a farm, they remain locked there until you withdraw them. The farm automatically tracks your share and accumulates rewards over time. Farming typically offers higher yields but also carries added smart-contract and market risks. It’s most effective when combined with pools that already generate strong trading fees.
What is farming?
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