Insights from the CoinGecko Yield Farming Survey
If you are looking to go into the wild with some of these decentralized protocols, we, firstly, salute you! Secondly, we remind that education in this space is the greatest tool to success.
The takeaways from this report are:
- Huge risk appetite for high returns – Among 312 farmers, 49% of them claimed that they would not invest in unaudited
protocols, yet majority (58%) have ploughed in over $1,000 in capital anyway – a significant sum in many parts of the world.
- Yields > everything else – And among them, 40% could not read contracts to verify potential vulnerabilities or scams.
- Uninformed – Alarmingly, 33% of those also do not know what impermanent loss is as a liquidity provider, implying that they may be taking more risk than they are aware of.
Do not chase shiny yields without knowing where it comes from.
That said; we are incredibly early to this space and the opportunity is vast. One resource is the yield farming page here: https://www.coingecko.com/en/yield-farming
Understanding it is the first step.2020 Yield Farming Survey - short