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That's only one aspect of yield farming, there are many other ways to yield farm that don't involve borrowing against volatile assets. Automated market makers a
by pcthrowaway 5y ago
That's only one aspect of yield farming, there are many other ways to yield farm that don't involve borrowing against volatile assets. Automated market makers are another popular way to farm that have a different kind of risk (impermanent loss), though there are other kinds of AMMs which have less impermanent loss as well.
Even with borrowing, you can enter a money market with just stablecoins and get returns in the range of 10-30% APY. The risks there are smart contract risk (obviously significant) as well as peg loss.