Bitcoin Forum

Hey guys!

somehow I didn't jump on the yield farming so far.
But I am looking at the APY for stables and it seems to be pretty decent for doing nothing, even on platforms like curve.

What do you think about it?
And where do you see the risks.

for platforms been around for long time, curve, balancer, uniswap, compound, aave - these are safe because of time
but risks can still happen regard

newer project that is risky which may be interesting to farm is like Beta https://www.coingecko.com/en/coins/beta-finance

Somehow the risk quite little probably since you are using stablecoins, but dont expect a high return comparable to paired tokens that do liquidity. There are plenty of platforms for stable such as the one mentioned but I never tried it out so Im not sure, but seeing the potential gain for a very conservative approach is quite a safer method.

One serious risk is connected with security of the platform you are going to do yield farming on. Hackers constantly find loopholes to attack the project and steal money. So you had better find one with a good reputation and several audits. On the other hand, such a platform will give you smaller interests, but you are likely to avoid the risk of loosing money.

Actually, yield farming is a rather attractive thing as you can get passive income with big interests. Actually, I used to make a lot of money on it, when yield farming platforms were on the peak of their popularity. Now this hype calm down, so profit is smaller, but I am still satisfied that I can do nothing and get 4-10 % for stables and 50-70% for more risky pairs.

Go to the pancakeswap and then try to pick stable coin to get stable APY. it might not be so big but it was using the stable coin and you will get less risk by losing your money due to the volatility in the market.


that's good enough and I'm still farming right now.

The potential risk should be you will be loosing your capital if you're using altcoin to earn passive income. The problem is your altcoin will be volatile following the demand and supply in the market.

You won't get rich holding stablecoins unless you have high farming rewards. I suggest spookyswap and ref finance, both of those have high apy.

The risk is in the team and the potential regulation and scrutiny that most of these DeFi platforms and yield farms are going to come under in the near future. While the yields can be amazing it doesnt take much for them to drop quickly from either a rug pull or some bad news. Just have to know your risk level.

The yield farming with stables has a lot of options and there are quite a few established projects. The risk is not so much in terms of the anonymity of developers or the developers going rogue. This is because these projects are already handling billions of dollars worth of locked value and have public founders and teams behind them.

The risk as usual is the smart-contract risk and its being irrevocable. For example, One of the most well known platforms Compound has resulted in losses worth around 160 Million dollar after an "upgrade gone very worng" (https://www.cnbc.com/2021/10/03/162-million-up-for-grabs-after-bug-in-defi-protocol-compound-.html)

I haven't looked into the details but you can rest assured that if any of this was intentional, the wider community would know. For example, it was a community tipoff that exposed the OpenSea founders machinations.

Moving onto platforms you can try, I'd recommend checking out Barnbridge (https://app.barnbridge.com/smart-alpha/pools) which has multiple products to choose from depending on your risk profile. This has a sincere and known team that has been very open about regulations as well as taxation events since the beginning.

Curve is a good solid platform and i think to invest a decent chunk of your money in it wouldn't be the worst idea.
The risks here are as standard as in any other protocol.
Before you start i recommend to understand what and how it works because this protocol is not the easiest to use and understand.

You mean simply the price of the altcoin will change?

What about the following scenario:
Deposit
100USDT
1000Shitcoin

Is it possible that in the end I will withdraw
80USDT
1200Shitcoin

Because of something? Is this "slippage"

You got some examples?

What about ETH - stables and don't I get some tockens from the defi provider which I can additionally stack?

It should be understood that curve is the market leader and there are relatively low percentages in it. Therefore if reliability is important to you then choose curve and if you want to get a large percentage then take into account that you will bear much higher risks.

Thy
Is there actually somewhere an overview over the APY for different providers?

Have you try Biswap? so far, this platform of DEX was good and in my experienced at the moment it
gave me earnings monthly, or daily were I can withdraw it anytime I want. And I know there are a lot of users of this
platform that they know I am telling you the truth. Come give it try now.

Even if you add liquidity to the DAI-USDC pools, the profit will be no more than 8-10% per annum.
The risks are errors in smart contracts, hacker attacks, or the depreciation of one of their assets.
I add liquidity to pools to receive rewards or tokens, but more profit can be earned from investing.

New projects and new platforms always have a greater risk than the security they offer because each new one still requires clear evidence for it within a certain timeframe or within a timeframe that they have set themselves.

Yield farming is a rather attractive thing as you can get passive income with big interests. :o