> For the complete documentation index, see [llms.txt](https://docs.blacksail.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.blacksail.finance/faq/what-is-yield-farming.md).

# What is Yield Farming?

**Yield farming** involves providing liquidity to a pool and then staking the LP tokens you receive in return. This strategy focuses on maximizing the yield from staking crypto, typically by depositing liquidity into an Automated Market Maker (AMM) protocol. Unlike centralized exchanges that rely on order books, DEXs use AMMs—smart contracts that facilitate decentralized liquidity for crypto traders.