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- **Description**: Involves participating in network operations (staking) or providing liquidity to decentralized finance (DeFi) platforms (yield farming) to earn rewards or interest on invested assets.
- **Benefits**: Generates passive income while holding cryptocurrencies. Can enhance overall returns in addition to capital appreciation.
- **Example**: Staking a specific token to earn additional tokens as rewards or providing liquidity on a decentralized exchange and earning transaction fees.