Don’t Busrt, G Man Warning Jumply Yield Farming
News provided by PRCrypto
Over-blowing Bubble in Danger
The high rewarded yield farming is the model with an incentive token being distributed to stakeholders. When Ethereum-based COMP released, due to a byproduct of illiquidity, it shot over 1,000 percent higher. The following DeFi projects like Bal and Synthetix’s fuel of yield intensive reward protocol, in a short term: Yield Farming. When farmers are getting money simply by using the product.
Users Need to Be Aware of Risks on Farm
The tragedy of COMP token has since been subject to a steep retracement. A large portion of these losses was incurred at the first listing allowed many traders could sell out in C Exchange. A bubble of further to fall could happen anytime.
As one and another yield farming project in DeFi collapses appeared, the losses are bear by the investors eventually.
Experienmental Operation of ETH
Yield farming involves a highly risk due to its experimental operation of Ethereum network with potentially undiscovered critical vulnerabilities and the project parties’s non-disclosed funding pool as well as the whale dominating’s governance token distribution which defeats the purpose of the whole exercise. Never stake or farm more than you can afford to lose.
Yield farming requires supplying assets to smart contracts for lengthy amounts of time. If those smart contracts are successfully attacked, your funds could be compromised. This is not a theoretical scenario. Earlier this year, dForce, a lending platform, was attacked for $25M.
Meet Gordon, the Man Presents DeFi Safe Earn
A Twitter thread by a DeFi project WaykiChain CEO, Gordon expresses his pity for those loss in opyn. Even ignoring the composability and conjunction issues of ETH base, behind the profitable farming system, impermanent loss is also a thing farmers should be aware of, and take precautions against.
Gordon indicates , in a normal lending system, while its model is similar to a bank, the bonus is getting from the margin that lenders paying a portion of the interest to the mortgagers, which means that the lenders can never get more than the interests paid by the lenders. So the gains are actually limited.
As for the yield farming offers the prospect of juicy returns, it is somewhat very hard to say the favorable yields is or is not out of an influx of hype. The funding pooling which is supported by a several of parties’s capital to subsidize. The yield farming essentially pays liquidity providers to risk their funds. This, he explained, is where things are going wrong in DeFi.
What DeFi Should Be
Instead, yield farming protocols should be more aligned with safety and sustainability. WaykiChain DeFi is built up in a structural way based in its own public chain avoiding the conjunction, unstable collateral fluctuations and chaos out of order.
The three-token-model in WaykiChain DeFi construct a healthy sustainable and trusting ecosystem. It’s Governance token WGRT price raises through both the interests of collateral and the penalty for abnormal system liquidation, reserves the interest and principal, plus the increase of market value.
This, he explained, is a batter way to bring more adoption and avoid destabilizing the DeFi sector.
At present, WaykiChain DeFi has already reached the 41M collateralization, mostly through its main physical application, W-Broker. W-Broker is a Securities firm based in Singapore providing customers Pre-IPO services to facilitate the huge demand of cross-border stocks and securities investors.
WaykiChain since 2017 is a project insists focusing on public chain technology development. After the third chain upgrade, WaykiChain public chain is moving closer forward to an open protocol DeFi ecosystem through cross- chain technology gaining various assets to expand its healthy ecosystem, an enabler for investors ins and outs to multiple assets through minimum threshold.
The high rewarded yield farming is the model with an incentive token being distributed to stakeholders. When Ethereum-based COMP released, due to a byproduct of illiquidity, it shot over 1,000 percent higher. The following DeFi projects like Bal and Synthetix’s fuel of yield intensive reward protocol, in a short term: Yield Farming. When farmers are getting money simply by using the product.
Users Need to Be Aware of Risks on Farm
The tragedy of COMP token has since been subject to a steep retracement. A large portion of these losses was incurred at the first listing allowed many traders could sell out in C Exchange. A bubble of further to fall could happen anytime.
As one and another yield farming project in DeFi collapses appeared, the losses are bear by the investors eventually.
Experienmental Operation of ETH
Yield farming involves a highly risk due to its experimental operation of Ethereum network with potentially undiscovered critical vulnerabilities and the project parties’s non-disclosed funding pool as well as the whale dominating’s governance token distribution which defeats the purpose of the whole exercise. Never stake or farm more than you can afford to lose.
Yield farming requires supplying assets to smart contracts for lengthy amounts of time. If those smart contracts are successfully attacked, your funds could be compromised. This is not a theoretical scenario. Earlier this year, dForce, a lending platform, was attacked for $25M.
Meet Gordon, the Man Presents DeFi Safe Earn
A Twitter thread by a DeFi project WaykiChain CEO, Gordon expresses his pity for those loss in opyn. Even ignoring the composability and conjunction issues of ETH base, behind the profitable farming system, impermanent loss is also a thing farmers should be aware of, and take precautions against.
Gordon indicates , in a normal lending system, while its model is similar to a bank, the bonus is getting from the margin that lenders paying a portion of the interest to the mortgagers, which means that the lenders can never get more than the interests paid by the lenders. So the gains are actually limited.
As for the yield farming offers the prospect of juicy returns, it is somewhat very hard to say the favorable yields is or is not out of an influx of hype. The funding pooling which is supported by a several of parties’s capital to subsidize. The yield farming essentially pays liquidity providers to risk their funds. This, he explained, is where things are going wrong in DeFi.
What DeFi Should Be
Instead, yield farming protocols should be more aligned with safety and sustainability. WaykiChain DeFi is built up in a structural way based in its own public chain avoiding the conjunction, unstable collateral fluctuations and chaos out of order.
The three-token-model in WaykiChain DeFi construct a healthy sustainable and trusting ecosystem. It’s Governance token WGRT price raises through both the interests of collateral and the penalty for abnormal system liquidation, reserves the interest and principal, plus the increase of market value.
This, he explained, is a batter way to bring more adoption and avoid destabilizing the DeFi sector.
At present, WaykiChain DeFi has already reached the 41M collateralization, mostly through its main physical application, W-Broker. W-Broker is a Securities firm based in Singapore providing customers Pre-IPO services to facilitate the huge demand of cross-border stocks and securities investors.
WaykiChain since 2017 is a project insists focusing on public chain technology development. After the third chain upgrade, WaykiChain public chain is moving closer forward to an open protocol DeFi ecosystem through cross- chain technology gaining various assets to expand its healthy ecosystem, an enabler for investors ins and outs to multiple assets through minimum threshold.