# Leveraged Yield Farming ![](https://2488008954-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MgtR4G3GkOPjpD64FpW%2F-MhI8MXykFWQ-i4AZ9dL%2F-MhICdcEc2QnVBfyvuKX%2FLeveraged%20Yield%20Farming%20copy.jpg?alt=media\&token=2f0bff71-6881-4287-b655-ec87e51edde2) Yield farming is a process in which users (or farmers) receive additional incentives (typically in the form of another token) for providing liquidity to a liquidity pool on a certain AMM protocol, such as PancakeSwap in this case. For instance, if you were to provide liquidity of 1 BNB and 250 BUSD (assuming 1 BNB = 250 BUSD) to a BNB-BUSD liquidity pool on PancakeSwap, then you will receive rewards in another token (e.g. 10 Token A) in addition to a share of trading fees that the protocol gains (e.g. 10% APY), which you would normally receive for being a liquidity provider on any AMM. Leveraged yield farming is a mechanism that allows farmers to lever up their yield farming position, meaning to borrow external liquidity and add to their liquidity to yield farm. As a result of having more liquidity to yield farm (e.g. borrow 2 more BNB, adding up to 3 BNB and 250 BUSD), leveraged yield farmers gain more rewards in Token A and a larger share of the trading fees than otherwise. ## Social Media Links ### Telegram - ### Twitter - ### Facebook - ### Reddit - ### Medium - ### YouTube - ### GitHub - ### BitcoinTalk -