Decentralized Finance - DeFi & Yield Farming

Kick starting this discussion thread so we can discuss new project, ask questions and provide support related to DeFi. You can find the top defi projects here - https://defipulse.com/ or https://www.coingecko.com/en/defi

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Yield farming Guides

What is yield farming? - by DeFi Dad

Guide to start yield farming YFI - by Boxmining


Guide to start yield farming YFV - by Boxmining

One of the cons of yield farming atm :skull_and_crossbones:. If this happens, just reject and wait a few seconds for the gas fees to go down.

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Sweet thread man cheers :+1:

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Risks with Yield farming
Please do your own research and only put in what your willing to lose before participating in any yield farming pools. Most yield farming projects are or if not borderline ponzis. Personally I would stick away from ones with food name projects. Despite this, I believe yield farming will be part of the future of crypto even after the bubble has popped.

Some potential risks are

  • Vulnerability in the staking contracts
  • Projects with minting keys can potentially mint infinite tokens.
  • Impermanent loss

Enjoy this guy for his comedic value, but ignore the majority of his analysis. He typically has a complete disconnect from the market, and is so late at identifying trends that he’d probably be a good signal to counter trade. lol

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Perhaps it is a good time to counter trade, but I believe yield farming will be part of crypto even after the craze eases. Yield farming is a subset of Defi. If you have already used uniswap to buy altcoins than you have already participated in Defi. If we are to transition from centralised exchanges to Dexs, it will require liquidity providers. Bitcoin enabled us to be our own bank, and with Defi, we may very well be seeing the birth of Defi 2.0, which can open a Pandora’s box. One of my major concerns with Defi atm are people borrowing crypto and then using lend the same exact crypto. Reminds me of this…

Which is why my participation in yield farming are only experimental and I have not put any money into this, that I was not already prepared to lose. By no means am I trying to recommend anyone to participate in yield farming, as there are several risks, some I’ve mentioned above.

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Defi is a “ponzi” - Andre Cronje (creator of Yearn finance YFI)

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Yep “withdraw anytime” is the major reason why im less skeptical about yield farming. All the ones I’ve tried allow you to withdraw anytime. This gives you the opportunity to exit when you think there is danger ahead. You just need to be careful of impermanent loss when you decide to withdraw.

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Yield farming will continue exist to a certain extent, as liquidity needs to be incentivized, however it’s very unlikely that it will persist in it’s current form. The evaluations of some of these otherwise useless yield tokens is beyond irrational. It’s not sustainable, and like all bubbles it will come crashing down. I won’t pretend to know when it will happen, but it’s inevitable. Most of us experienced 2017. Anyone who is not seeing similar warning signs here… then I’m not sure what to tell them (speaking in general here… not directing this at you specifically).

Defi in general wilI be a huge part of the industry moving forward, however currently the only real adoption for Defi is to provide liquidity, farming, and lending. So Defi as a whole will likely also see an overall retrace. For this reason I personally have started to scale out of Defi. I won’t leave it entirely, but it’s well into the “danger range”, as risk needs to be adjusted according.

As for Crypto Daily, I’m not actually suggesting that anyone counter trade the guy. I was just joking about that. However the guy is completely out of touch with the actual market. He’s a BTC maxi, fails to understand the technological innovation and significance of the Alt market, and when he does finally get off his BTC “store of value” pedestal, he’s 4-6 months too late. In fact, I’d argue that out of all the popular crypto Youtubers, he’s the most out of touch. That being said, I do enjoy him for entertainment purposes.

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I agree that at the current rate, the returns are unsustainable. Most of the return rates that these yield farming projects give are based on their token also rising in value. Although i do wonder how much profits these pools actually accrue. I recently paid liquidity providers on uniswap over $50 on a single trade, and so it makes me think that maybe some of these pools are actually generating decent value. However I do think alot of these yield tokens are over valued. I’m not sure how much you’ve looked into yield farming, but you dont actually need to buy their tokens to participate (eg. stable coin pools on YFI and YFV).

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I’ve seen screen shots of a group that tried to catch the falling knife on this one. It dropped 99%, they tried to buy the dip, and then it kept dropping another 99%. This only needs an 800,000% gain to get back to even. :see_no_evil:

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Hahaha. Thats amazing. I guess its what you get for buying a meme

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:ear_of_rice::tractor:

Ok I actually got a bit rekt farming SAFE. Didn’t buy the coin, but bought Wrapped Nexus Mutual (WNXM) to farm in the WNXM pool and now it’s dumping because of this whole debacle. Withdrew my stake position and sold WNXM at 2k lost.


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