Description

Want more tips and tricks? (⁠click here⁠)

#wupples #wupplescrypto #crypto #yieldfarming

Hi!

In our last lesson, we talked about whether or not yield farming is sustainable.

Today, we’ll look at the future of yield farming.

In the volatile, fast-paced DeFi yield farming space, it’s practically impossible to accurately predict the future.

You just never know what new sort of idea is going to pop up and become popular in the cryptocurrency market.

The general consensus, however, is that the lucrative bubble is likely to burst at some point.

The current levels of hype and expectation could potentially place too much strain on the network, causing problems with congestion.

Any resulting price corrections might end up with some yield farmers being unable to liquidate their assets.

This could then have a knock-on effect on the overall confidence in yield farming.

However, Nexus Mutual founder Hugh Karp says we might soon see more prosaic yield farming applications.

For example, forms of profit-sharing that reward certain kinds of behavior.

For example, what if COMP holders (the tokens rewarded on the Compound platform) decided the protocol needed more people to put money in and leave it there longer?

The community could create a proposal that shaved off a little of each token’s yield and paid that portion out only to the tokens that were older than six months.

It probably wouldn’t be much at all, but an investor with the right time horizon and risk profile might take it into consideration before making a withdrawal.

Whatever happens, cryptocurrency’s yield farmers will keep moving fast.

Some fresh fields might open and some may soon bear much less luscious fruit.

For now, yield farming remains a high-risk, high-reward practice that is worth pursuing, so long as you’ve done the necessary research and carried out your risk assessments in advance.

But that’s the nice thing about yield farming in DeFi: it’s very easy to switch fields.

In our next lesson, we’ll look at farming on Compound.

#cryptocurrency #crypto #cryptocurrencies #cryptonews #cryptotrading #cryptocurrencynews #cryptotrade #cryptolife #cryptoworld #cryptomining #cryptomeme #cryptography #cryptokeys #cryptos #cryptomemes #cryptocoin #cryptotrader #cryptocurrencytrading #cryptocoins #Crypton #cryptomoneda #cryptolifestyle #cryptomoney #cryptozoology #Cryptocurency #cryptorevolution #cryptocurrencyinviestments #cryptotraders #cryptoinvestor #cryptowallet