What is Yield Farming?
Last reviewed 2026-05-03
Yield farming is rotating capital across DeFi protocols to maximize token-incentive returns. Peaked during 2020 DeFi Summer; modern variants include points farming (Eigen, Blast, Ethena, ether.fi) and Pendle PT/YT yield trading.
How it works
Yield farming is rotating capital across DeFi protocols to maximize token-incentive returns. Peaked during 2020 DeFi Summer; modern variants include points farming (Eigen, Blast, Ethena, ether.fi) and Pendle PT/YT yield trading.
For deeper protocol-level mechanics, see the related glossary terms below or the linked DeFi Intel topic deep-dive.
Why it matters
Yield farming kickstarted DeFi user growth (2020 Compound) and remains the dominant user-acquisition lever (2024-2025 points programs).
Real-world examples
2020 Compound COMP launch, 2024 Eigenlayer points, 2024 ether.fi loyalty points, 2025 Pendle PT/YT yield trading.
Related terms
Go deeper
Read the full DeFi Intel topic deep-dive or browse the complete crypto glossary.
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