DeFi & Yield

What is the difference between yield farming and staking?

Yield farming and staking both aim to earn rewards on crypto, but they work differently. Staking commits tokens to help secure a proof-of-stake network and earns protocol rewards for that role. Yield farming supplies assets to DeFi protocols, often as liquidity, to earn trading fees and incentive tokens. For example, staking might mean locking a network's coin to validate transactions, while farming might mean depositing a token pair into a liquidity pool. Farming usually carries more moving parts and risks, including impermanent loss. Rewards in both are variable and not guaranteed. Matching risk to intent is the discipline we bring at Qatobit. See our research.

Crypto investments are subject to market risk and volatility. Past performance is not indicative of future returns. This is general information, not investment advice — consider your own circumstances or consult a qualified adviser before investing.