By depositing a specified percentage of two or more digital assets in liquidity pools on exchanges, you can become a liquidity provider. As a representation of your portion of the liquidity pool, you would receive LP or liquidity provider tokens from the decentralized exchange. For added interest, you can now stake the LP tokens on various decentralized sites. As a result, yield farming is a viable method for producing two independent streams of passive income from a single cryptocurrency deposit.
As a liquidity provider on many DeFi exchanges, you can try yield farming as one of the dependable crypto passive income sources. Using a reliable decentralized exchange, such as Spindex, is the ideal way to start making passive income on crypto using yield farming.