# Yield Farming Parties ## What is Yield Farming? Yield farming with pooled funds can be more rewarding than farming on your own. Yield farming protocols incentivize [liquidity providers](https://coinmarketcap.com/alexandria/glossary/liquidity-provider) (LP) to stake their cryptocurrency in a [smart contract](https://coinmarketcap.com/alexandria/glossary/smart-contract)-based liquidity pool. This is usually done with paired assets. These rewards can be a percentage of transaction fees, interest from lenders or a governance token. These returns are expressed as an annual percentage yield (APY). As more investors add funds to the related liquidity pool, the value of the issued returns rise in value. ### PartyFinance and Farming Many liquidity related pools take into account factors such as time and amount staked. For example, a wallet can make *exponentially* more rewards if they provid more LP for the respective farm. Thus, it is more beneficial to for individuals with small amounts of capital to invest, to pool their fudns to become a single larger entity than a sole individual lending on their own. PartyFinance provides a mutually beneficial relationship to these farming platforms since larger amounts of liquidity will be provided. Furthermore in the future, parties could be formed to allow partygoers to pool their exposure to a variety of new projects that offer randomised mints. These syndications will be available in the future as more platform features beceom available. ### Relationship between Parties and Yield Farming In the future we expect new projects will approach yield farming parties in order to launch on DEXs and similar platforms. This is the a core advantage of PartyFinance, third parties recruiting parties to assist one another in cryptocurrency adoption. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://partyfinance.gitbook.io/polkaparty/products/yield-farming-daos.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.