By Noah 
What is farming
Farming (or yield farming) is a method of earning passive income in the decentralized finance (DeFi) sector, where users provide their crypto assets to liquidity protocols and receive rewards in return. These rewards are usually paid out in the form of new tokens, interest, or a share of trading fees generated by the platform.
Unlike simply holding tokens in a wallet, farming allows your assets to “work” and generate yield. The concept is somewhat similar to a bank deposit but with much higher flexibility and potentially greater returns — along with increased risks.
How farming works
The basic idea of farming is this: a user deposits their crypto into a liquidity pool on a decentralized exchange (like Uniswap, PancakeSwap, or Curve). These pools enable peer-to-peer crypto trading without intermediaries.
In return for providing liquidity, the user receives special tokens (usually LP tokens), which represent their share of the pool. These LP tokens can then be staked in farming smart contracts, where users begin earning additional rewards — either in the form of new project tokens or a share of trading fees.
Sometimes, farming involves several steps: first, you add liquidity, then stake the LP tokens, and finally farm them in third-party protocols. This layered approach is common in more complex DeFi platforms.
Why projects launch farming
For crypto projects, launching farming programs is a fast and efficient way to attract liquidity and users. Thanks to high yields in the early stages, projects can quickly generate buzz, gain capital, and build an engaged community.
Farming helps to:
• Increase token and protocol liquidity
• Boost user activity and engagement
• Attract long-term token holders
• Generate organic promotion as users share the opportunity with others
However, overly aggressive farming without a real product often results in temporary hype followed by a sharp drop in interest once rewards dry up.
Types of farming
There are several common types of farming:
• Liquidity farming. Users deposit two tokens into a pool (e.g., ETH and USDC) and receive LP tokens.
• Single-token farming. Staking one specific token to earn rewards. Often used to incentivize holding.
• Incentivized farming. High APRs offered at launch to attract liquidity quickly.
• Cross-platform farming. LP tokens are used across multiple protocols to maximize yield (e.g., via Yearn or Beefy).
Risks of farming
While farming offers high returns, it also carries risks:
• Impermanent loss. Price divergence between pooled tokens may result in a lower total value upon withdrawal.
• Smart contract exploits. Bugs or attacks can lead to total loss of funds.
• Reward token depreciation. Tokens earned as rewards may lose value rapidly.
• Scam projects. Some protocols are created solely to collect liquidity and disappear.
This is why it’s crucial to research the project, check for smart contract audits, understand the reward mechanics, and avoid offers that seem “too good to be true.”
How to track new farming opportunities
Manually tracking new farming launches is difficult — dozens of projects launch weekly, and information is scattered across various platforms.
To stay ahead of the game, use the crypto news and event resource Crypto Calendar — a smart platform that aggregates the most important events in the crypto world, including farming launches, protocol updates, airdrops, listings, and much more.
With Crypto Calendar, you can:
• Get up-to-date info about upcoming farming launches
• Set alerts for your favorite projects
• Access detailed data on APRs, risks, and participation rules
• Plan your investment activity around future events
Using a tool like Crypto Calendar saves time and ensures you never miss a valuable opportunity.
Conclusion
Farming is one of the most popular ways to earn in crypto without selling your tokens. It allows users to generate passive income, support ecosystem growth, and engage with the decentralized economy.
However, it’s important to understand the risks and conditions before participating. And to stay informed about new launches and events — rely on Crypto Calendar, your go-to source for smart planning in the crypto space.