[Article] - Meet the Yield Farmers Plowing Cryptocurrency’s Riskiest Trend

[Jeremy Franklin]

I recently found an article about Yield Farming and it's dangers. The article also highlights the aspects of DeFi, Yield Farming and why so many are currently into it. Definitely worth reading when you're into the new DeFi space.

Meet the Yield Farmers Plowing Cryptocurrency’s Riskiest Trend

One is a Grammy Award-winning musician with lots of spare time. Another is a software engineer with nowhere to go during the pandemic. There’s also an editor for a data site and a fund manager who invests in digital assets.

What these people have in common is an obscure side gig known as “yield farming,” a type of cryptocurrency trading and investing that didn’t really even exist until 2020. Yield farming is producing fixed-income-like returns that can, at least for brief stretches, provide annualized interest rates equivalent to percentages investors cannot find anywhere else.

What do you guys think about Yield Farming? And do you think that it's really sustainable? Or will it be another bubbel, which is about to pop soon?

[Crypto_lion]

How do people think that this yield farming is providing guaranteed returns. They offer the returns in percentage of coins held and not in FIAT. If the value of the coins go down which certainly will for most of the coins then they will end up losing money even though they gain APR returns in terms of coins held.

[masterrex]

Just like any other crypto base HYPE, Defi will also experience the same fate Because hype is not forever especially in the industry that was too volatile like cryptocurrencies. By the way about the Yield farming IMO, like any other crypto-related Investment Yield farming also has no guarantee to earn thats why the risk is always there, and because of that reality, it is better to educate ourselves first about the said Investment so that we are aware of all the positive and negative side of the Defi and Yield farming Investments. 

[pokeronlinestatus]

Yield farming seems like a good opportunity for most people. I wouldn’t say that it is a bad thing, when you see the opportunity to make some more money, you’re definitely going to be taking that opportunity as long as it’s not something that’s bad for me. There are big enough chances here and that’s why so many people are taking it to invest and make profits after.

But, I keep wondering what kind of effect this yield farming will have on these DeFi projects, because one thing I am very sure is that people are not going to be holding their earnings forever, there will come a time they will pull out from it, and I think that’s already happening.