Yield Farming and Staking Rewards
Understand how DeFi yield farming and staking reward contracts distribute tokens over time, including the reward-per-token accounting pattern used by major protocols.
What Is Yield Farming?
Yield farming means depositing tokens into a protocol to earn additional token rewards. Users stake an asset, and the protocol distributes a reward token continuously over time to incentivize participation.
The Core Challenge
The hard part is fairly splitting rewards among many stakers who deposit and withdraw at different times, without looping over every user (which would be too gas-expensive).
The solution is the reward-per-token accumulator pattern.
All lessons in this course
- AMMs and Liquidity Pools
- Lending and Borrowing Protocols
- Flash Loans and Arbitrage
- Yield Farming and Staking Rewards