# Yield Farming

Yield farming is a popular trend in the cryptocurrency world where users can earn rewards for providing liquidity to decentralized finance (DeFi) protocols. Monocerus Swap, a decentralized exchange, is one such platform that allows users to participate in yield farming by providing liquidity and staking their tokens.

Before we start, here are some terms you have to be familiar with in order to fully understand the article:

* **Liquidity:** Refers to the availability of assets that can be easily bought or sold without causing significant changes in the asset's price.
* **Liquidity Providers (LPs):** These are individuals or entities that provide liquidity to a DeFi protocol in exchange for rewards.
* **MONOCERUS-POS:** Monocerus Swap Liquidity Provider NFTs represent liquidity provider shares in a particular Monocerus Swap pool. MONOCERUS-POS NFTs can be used to stake and earn rewards in the form of $CERUS tokens.

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### Forms Of Yield Farming

* **Staking:** This involves locking up a certain amount of tokens to earn rewards in return.
* **Liquidity providing:** This involves adding funds to a liquidity pool and receiving MONOCERUS-POS NFTs in return. These MONOCERUS-POS NFTs can then be staked to earn rewards.

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