Rethinking Yield Farming: A Misinterpreted Tool in Blockchain Finance

Authors

  • Ingrid Solberg Freelance Scholar, Norway

Keywords:

Yield Farming, Liquidity Pooling, Staking, Locking, DeFi, Blockchain Education, Sustainable Finance

Abstract

Yield farming has become one of the most popular DeFi mechanisms for passive income generation, but its speculative nature, declining returns, and general misunderstanding have led to long-term negative consequences for blockchain's reputation. This paper explores the fundamental differences between yield farming, liquidity pooling, staking, and token locking. It identifies how misconceptions have undermined confidence in decentralized finance and proposes a long-term vision centered on sustainable mechanisms like liquidity pooling.

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Published

2025-05-28

How to Cite

Solberg, I. (2025). Rethinking Yield Farming: A Misinterpreted Tool in Blockchain Finance. Scientific Journal of Metaverse and Blockchain Technologies, 3(1), 99–103. Retrieved from https://sjmbt.com/index.php/j/article/view/69

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Section

Original Research Articles

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