> For the complete documentation index, see [llms.txt](https://boxdao-1.gitbook.io/box-dao/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://boxdao-1.gitbook.io/box-dao/box-dao-greater-than-dapp/yield-farming.md).

# Yield Farming

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{% hint style="success" %}
**Yield Farming** is one of the strategies that comes as a **solution introduced in DeFi networks** to make new ways of trading and income from crypto assets viable.
{% endhint %}

<details>

<summary>Estrategy</summary>

**Yield farming** lets users that are providing liquidity earn B-DAO rewards by locking their LP tokens into a smart contract. The incentive is to balance out the risk of impermanent loss that comes along with locking in your liquidity.

</details>

<details>

<summary>How it Works?</summary>

First, the LP investor needs to choose a pool he wants to participate in. Then he needs to deposit his tokens into the pool at a ratio of 50:50. In practice, this means that the amounts deposited in pairs of crypto assets need to match. If you are going to make a deposit of B-DAO and ETH for example, it needs to be R$100 in Box-DAO and R$100 in ETH.

</details>