The rise of decentralized finance (DeFi) has led to a surge in yield farming, a high-risk high-reward strategy. By providing liquidity to decentralized exchanges, farmers can earn impressive yields. However, the lack of regulation and volatility in the market make it essential to approach with caution and diversify your portfolio.

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Diversification is key in DeFi, as yield farming's high-risk nature demands a thorough understanding of the market and its volatility.