# Yield Farming

## What is Yield Farming?

Yield farming in SwapMode allows users to generate rewards or interest by pooling their cryptocurrency with others. Specifically tailored to encourage liquidity provision, SwapMode farms let users stake their Liquidity Provider (LP) tokens for selected token pairs, earning SMD + xSMD utility tokens in return.

The process is straightforward: users deposit their LP tokens into a chosen farm, and SwapMode automatically allocates rewards based on the user's stake in the farm. These rewards mainly come from a share of the trading fees the liquidity pool accrues, providing a passive income stream for participants.

## Active Farms

| Liquidity Pool | Status | Address |
| -------------- | ------ | ------- |
|                |        |         |
|                |        |         |
|                |        |         |


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