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Yield farming is a way for investors to earn a passive income by leaving their DeFi tokens locked up on a platform. In exchange for the immobility of these tokens, investors receive income in the form of rewards or interest payments. And the best part? Many yield farms offer yields in the double digits per year, which is higher than most traditional fixed income investments.
Now, you might be wondering how yield farming is different from mining via Proof of Participation (PoS). Well, for starters, there's no "miner" involved in yield farming because the tokens are not mined. Instead, liquidity providers (LPs) are a big part of the yield farming process. They provide liquidity to the pool and in exchange, they receive rewards or interest payments.
The interest paid is calculated in annual terms, so a yield farming that pays 3% means that the investor will have a 3% return after one year of investment. There are two main metrics used in calculating annual returns, and at Pepe AI, we use APR. This operates on a simple interest basis, making it easy to understand and calculate your earnings.
At Pepe AI, we're all about bringing traditional financial services to the cryptocurrency market, and yield farming is just one of the tools that make this possible. With our yield farming system, you can earn more DeFi tokens and grow your investment without having to do any extra work. So why wait? Join Pepe AI Farming today and start earning rewards!