# Blox Farm

Blox Estate DeFi yield farming is becoming one of the Blox Estate’s utility to earn passive income with Blox Estate Foundation.

Yield farming requires users (often called Liquidity Providers) and a Liquidity pool (decentralized smart contracts containing pooled funds). Once this requirement is fulfilled, users can begin adding funds to the liquidity pools, which serve as, sources of exchange and lending to other users.

In return for depositing funds, users get rewards for contribution periodically, based on the underlying DeFi protocol rules. To generate compounding interest on contribution, users can further reinvest rewarded tokens back into the liquidity pool to generate higher yields. Most importantly, note that rewards are determined by the amount deposited, so higher capital translates to higher rewards.
