# Yield farming

## Definition

Yield farming is the practice of moving or depositing crypto assets into DeFi protocols to seek fees, token incentives or other returns.

## What it means in practice

Returns can change quickly and may depend on token prices, liquidity incentives, leverage, smart-contract design and governance decisions.

## How this concept appears in Terenval Wallet

Terenval may be used to sign transactions into compatible external DeFi positions, but advertised yield is not an ordinary property of the wallet balance.

**Important:** High displayed APY does not guarantee profit and can hide token, liquidity or protocol risk.

**[Install Terenval Wallet](https://wallet.terenval.com/?lang=en)**

## Related terms

- [DeFi](https://wallet.terenval.com/glossary/defi/)
- [Liquidity provider](https://wallet.terenval.com/glossary/liquidity-provider/)
- [Liquidity pool](https://wallet.terenval.com/glossary/liquidity-pool/)
- [Lending protocol](https://wallet.terenval.com/glossary/lending-protocol/)
- [Collateral](https://wallet.terenval.com/glossary/collateral/)
- [Token approval](https://wallet.terenval.com/glossary/token-approval/)

## Related Terenval Answers

- [How to Secure a Non-Custodial Crypto Wallet](https://wallet.terenval.com/answers/how-to-secure-non-custodial-crypto-wallet/)
- [How to Send Crypto Safely Between Wallets](https://wallet.terenval.com/answers/how-to-send-crypto-safely-between-wallets/)
- [Can One Crypto Wallet Manage Multiple Blockchains?](https://wallet.terenval.com/answers/can-one-crypto-wallet-manage-multiple-blockchains/)

## Sources

- https://ethereum.org/en/defi/
- https://docs.walletconnect.network/
- https://wallet.terenval.com/info/security/

Official page: https://wallet.terenval.com/glossary/yield-farming/