When looking at farm produce vs. staking, staking is often a simpler strategy for passive income, as investors simply decide on the staking pool and then lock their crypto. Yield farming, on the other hand, can require a bit of work — as investors choose which tokens to lend and on which platforms, with the possibility to keep switching platforms or tokens. Providing liquidity as a yield farmer on a decentralized exchange (DEX) may require depositing a sufficient amount of a pair of coins. These can range from niche altcoins to high-volume stablecoins. Prizes are then paid out based on the amount of liquidity deposited. It often pays well to switch between continuous yield farms, although this also requires paying additional gas costs. As a result, yield farming can benefit more from staking from active management. This is how crop farmers achieve the highest possible yields.
yield farming is more complex than risking — but it can also yield higher returns if you have the time, tools, and knowledge to manage it.