# Farming in DeFi: Your Money Works While You Sleep
Tired of your crypto just sitting in your wallet doing nothing? Farming is basically your way to earn passive income in DeFi.
**The idea is simple:** - Put your crypto into a liquidity pool - Other users trade or lend with it - You receive commissions + reward tokens
It's like being a lender at a bank, but without the bureaucracy and with much juicier returns than any traditional deposit.
**Real example:** You put 1,000 USDC into Uniswap, and in a month, you earn 50-100 USDC in interest. At a bank? Maximum 1-2% annually, haha.
**But watch out for the risks:** - The price of your crypto can drop while it's locked up (impermanent loss) - Bugs in smart contracts = lost funds - Returns depend on the volatility and volume of the pool
The good? Your money works 24/7. The bad? You need to stay alert or you'll end up holding bags.
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# Farming in DeFi: Your Money Works While You Sleep
Tired of your crypto just sitting in your wallet doing nothing? Farming is basically your way to earn passive income in DeFi.
**The idea is simple:**
- Put your crypto into a liquidity pool
- Other users trade or lend with it
- You receive commissions + reward tokens
It's like being a lender at a bank, but without the bureaucracy and with much juicier returns than any traditional deposit.
**Real example:** You put 1,000 USDC into Uniswap, and in a month, you earn 50-100 USDC in interest. At a bank? Maximum 1-2% annually, haha.
**But watch out for the risks:**
- The price of your crypto can drop while it's locked up (impermanent loss)
- Bugs in smart contracts = lost funds
- Returns depend on the volatility and volume of the pool
The good? Your money works 24/7. The bad? You need to stay alert or you'll end up holding bags.