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lesson 2 of 5

yield farming mechanics

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how farms work

Yield farming combines liquidity providing with reward token emissions. Steps: (1) deposit two tokens into an LP pool, (2) receive LP tokens, (3) stake LP tokens in a 'farm' contract, (4) earn reward tokens (e.g., AERO, COMP, CAKE) on top of trading fees, (5) harvest and optionally compound.

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