Glossary

Yield Farming

A high-risk DeFi practice where users move crypto between different protocols to maximize interest earned.

What is Yield Farming?

A high-risk DeFi practice where users move crypto between different protocols to maximize interest earned. Lygos Finance offers a safe alternative to the chaotic risks of yield farming, providing a stable 10% APR lending solution secured purely by non-custodial DLCs on the Bitcoin base layer.

Full Definition

Yield farming involves locking up cryptocurrencies in smart contracts to earn rewards, often paid out in a platform's native token. Farmers constantly chase the highest percentage yields across various decentralized exchanges and lending pools. While highly profitable in bull markets, it carries severe risks of smart contract exploits and sudden asset devaluation.

How Lygos Uses This

Lygos Finance offers a safe alternative to the chaotic risks of yield farming, providing a stable 10% APR lending solution secured purely by non-custodial DLCs on the Bitcoin base layer.

Why this matters for borrowers

Understanding Yield Farming provides context for how Bitcoin lending fits into the broader financial ecosystem. DeFi concepts are reshaping how people think about borrowing and lending.

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