The Web3 gaming term for earning in-game tokens or rewards by staking or providing liquidity is called "Yield Farming." In Web3 games, players earn rewards by staking their tokens or providing liquidity to in-game pools, which helps drive the game's economy and rewards players with in-game tokens or other valuable assets.
How Yield Farming Works in Web3 Gaming
- Staking Tokens: Players lock or stake their tokens in a pool and receive rewards in the form of tokens or exclusive in-game assets based on the amount and duration of staked tokens.
- Providing Liquidity: Players supply token pairs to liquidity pools on in-game decentralized exchanges (DEXs), earning a share of transaction fees and additional tokens as rewards.
Benefits of Yield Farming
- Players earn passive income without active gameplay.
- It boosts game economy stability by ensuring liquidity.
- Sometimes includes governance tokens that give players voting rights in game decisions.
Thus, "Yield Farming" is the core term used to describe this earning mechanism in the Web3 gaming ecosystem.
