Yield farming is the practice of strategically deploying capital across multiple DeFi protocols to maximise overall returns. Yield farmers move assets between protocols based on available APRs, seeking the highest risk-adjusted returns.

Yield farming strategies can involve providing liquidity to DEX pools, staking tokens in reward pools, lending assets on lending protocols, and compounding earned rewards back into positions to accelerate growth.

On Solana, yield farming is facilitated by low transaction fees that make frequent moves and compounding economically viable. Yield farmers benefit from Solana's near-instant transaction finality.