> For the complete documentation index, see [llms.txt](https://liquidx-3.gitbook.io/liquidx-whitepaper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://liquidx-3.gitbook.io/liquidx-whitepaper/2.-fundamentals/2.6-what-is-yield-farming.md).

# 2.6  What is Yield Farming?

<figure><img src="/files/YPEbQL0qTb4DdWhn0C15" alt=""><figcaption></figcaption></figure>

Yield farming is the practice of putting your cryptocurrency assets to work to generate returns. Instead of leaving tokens idle in a digital wallet, you deposit them into a protocol that uses them productively - and the protocol shares the generated revenue with you as 'yield' (interest or rewards).

LiquidX offers multiple yield farming pools, each with different return rates and risk profiles. Importantly, LiquidX's yield comes from real protocol revenue - fees charged to borrowers - not from artificially printing more tokens (which would simply dilute everyone's holdings and is a common red flag in lower-quality projects).

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