# Yield farming

You receive yield farming rewards automatically by staking your DNFT. It has never been so easy to participate in an ecosystem and get rewarded.

# How does it work

Yield farming is one field of DeFi that allows crypto investors to earn rewards by moving their tokens to yield-generating smart contracts. In this process, the investor is the liquidity provider (LP), and the liquidity pool is a cash-filled smart contract.

The yield farming process typically expects participants to lock up or stake their funds, and yield aggregators work by automating the farming process to produce the highest yields possible. Let’s see how this system works in detail.

Yield aggregators combine the investments of various farmers (crypto investors) to facilitate profits earning using different strategies while remaining idle and waiting to accumulate passive income since the automated service provided by yield aggregators does it all for them.

This is how the process looks like:

The protocol automatically compounds the rewards from yield aggregators and distributes a portion to the algorithmic trading fund.

Using these strategies, participants can move tokens around different platforms, optimizing yields via auto-compounding. This process allows stakers to claim and restake their rewards without the need to do it manually.