Liquidity Farming

Introduction 
If you've lately dabbled in cryptocurrency, you may have heard of the DeFi category of crypto tokens, which is both exciting and dangerous (Decentralized Finance). Peer-to-peer lending is made possible by DeFi, which eliminates all middlemen from financial transactions. DeFi lending is a rapidly expanding DeFi application and industry. Tokens purchased using cryptocurrency can be kept without any use. You can get a loan using DeFi lending protocols using your crypto assets as collateral.


What is Liquidity Farming 
You can earn passive interest on your cryptocurrency holdings through liquidity farming at rates that are significantly greater than those offered by conventional savings accounts. Using permissionless liquidity protocols, you can lock up your cryptocurrency and earn rewards. The term "farming" is a fair comparison to cultivating your own cryptocurrency crop.
As a result, liquidity farming might alter how investors HODL going forward. Investors in cryptocurrencies who refuse to sell their holdings despite severe market volatility and subpar results are known as "crypto HODLers."
Why would investors keep their cryptocurrency idle when they can use it to work for them?