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With the latest crypto rally, yield farm rates have skyrocketed. Getting 10 to 30% APY on stablecoins (i.e. no risk of loss in value as they are USD-matching co

With the latest crypto rally, yield farm rates have skyrocketed. Getting 10 to 30% APY on stablecoins (i.e. no risk of loss in value as they are USD-matching coins). Making money hand over fist for clicking buttons.

ProllyInfamous 3y ago
I've been a crypto_saver for over a decade; yet still I downvoted your ridiculousness [parent comment]. Please don't be so wreckless in your passion(s). And: HODL
- monero-xmr 3y ago
  I've been yield farming for years, this is not a new thing.
  - ProllyInfamous 3y ago
    Great username. Currently heating my personal home primarily with xmr-rig. I have a heatpump, but why?! /s
Johanx64 3y ago
How in the loving gods earth are you getting 10% to 30% interest rate without risk? None of the stable coins have gone through a full thorough audit done by a reputable company, thus it's safe to assume they are not fully 1:1 backed and thus it's a ticking time bomb. 30% interest rate sounds like a pyramid scheme. If something sounds like a scam, then it probably is a scam, since it's crypto, then it's most certainly a scam
- monero-xmr 3y ago
  Not sure if you are someone who just wants to shit on stuff without ever learning, this is HN so 90% chance that's the case. But on the offchance you are actually curious: Tokens should be viewed like stock. The team behind the token has a pool to fund their network / app. Different products in the decentralised finance space (DeFi) incentive usage by handing out their tokens (stock) to people who provide value to their product. In DeFi this is usually by becoming a liquidity provider (LP), providing your own assets to their protocol in return for a fee and incentives. This makes logical sense for the team, because the most common metric for valuing an app is "total value locked" (TVL). The more TVL an app or network has, the more usage and value it has, which typically translates into increased value for their token. There are way too many protocols to list. Checkout Velodrome as an example of a very high APY protocol https://app.velodrome.finance/liquidity?sort=apr&asc=false https://app.velodrome.finance/liquidity?sort=apr&asc=false
  - sanderjd 3y ago
    You should take to heart that most people here are not just "shitting on stuff without ever learning", but have seen this story play out many times now. Everything you described about LPs, TVL, and token value; you are just describing the mechanics of the ponzi scheme, not describing the way in which it isn't a ponzi scheme. If you are getting "interest" over 20%, what you are doing is extracting that money (which isn't real until you turn it into fiat, btw) from the people in the future who lose money when the scheme inevitably crashes; they are transferring their future losses backward in time to you in the present. That's fine as far as it goes, if you're aware of what's going on, ethically comfortable with it, and make sure to get out of the scheme early enough to not yourself be one of the people left without a chair when the music stops. But from your comment, I think it seems like you aren't one of the people cynically taking advantage of the scheme, in which case, you are actually one of the marks. It is simply not possible for a scheme that is above board to pay over 4x the prevailing global interest rate, without significant risk.
    - monero-xmr 3y ago
      Wow you must know more than me, oh wise one /s I’ve been in crypto for 13 years now, I’m sure any day now Bitcoin will hit 0 and you’ll be proven right, and all the yield farms and defi will collapse, sure sure.
      - sanderjd 3y ago
        You seem to act like you're the only one here who has been following this for a long time... But that's far from the case on this particular forum. I didn't say anything about Bitcoin. But yes, all those yield farming schemes that are paying double digit "risk-free interest" will eventually crash out and leave some set of people in the red. It has happened over and over again, it's just that new tokens get set up and re-start the cycle.
        monero-xmr 3y ago
        It's impossible for smart contracts that are properly coded to enable anyone to pull the funds out. Nothing is 100% guaranteed but protocols like Uniswap have been around for years, their contracts have had many professional audits, and the reward for breaking them is billions of dollars, so the odds of a bug in an Uniswap pool is very low. Other protocols pay incentives to LP the Uniswap pools. Where you expect the failure to come is perplexing, but yes you know more than me.
quickthrower2 3y ago
Meh Madoff outperformed that

ProllyInfamous 3y ago

I've been a crypto_saver for over a decade; yet still I downvoted your ridiculousness [parent comment]. Please don't be so wreckless in your passion(s). And: HODL

monero-xmr 3y ago
I've been yield farming for years, this is not a new thing.
- ProllyInfamous 3y ago
  Great username. Currently heating my personal home primarily with xmr-rig. I have a heatpump, but why?! /s

Johanx64 3y ago

How in the loving gods earth are you getting 10% to 30% interest rate without risk? None of the stable coins have gone through a full thorough audit done by a reputable company, thus it's safe to assume they are not fully 1:1 backed and thus it's a ticking time bomb. 30% interest rate sounds like a pyramid scheme. If something sounds like a scam, then it probably is a scam, since it's crypto, then it's most certainly a scam

monero-xmr 3y ago
Not sure if you are someone who just wants to shit on stuff without ever learning, this is HN so 90% chance that's the case. But on the offchance you are actually curious: Tokens should be viewed like stock. The team behind the token has a pool to fund their network / app. Different products in the decentralised finance space (DeFi) incentive usage by handing out their tokens (stock) to people who provide value to their product. In DeFi this is usually by becoming a liquidity provider (LP), providing your own assets to their protocol in return for a fee and incentives. This makes logical sense for the team, because the most common metric for valuing an app is "total value locked" (TVL). The more TVL an app or network has, the more usage and value it has, which typically translates into increased value for their token. There are way too many protocols to list. Checkout Velodrome as an example of a very high APY protocol https://app.velodrome.finance/liquidity?sort=apr&asc=false https://app.velodrome.finance/liquidity?sort=apr&asc=false
- sanderjd 3y ago
  You should take to heart that most people here are not just "shitting on stuff without ever learning", but have seen this story play out many times now. Everything you described about LPs, TVL, and token value; you are just describing the mechanics of the ponzi scheme, not describing the way in which it isn't a ponzi scheme. If you are getting "interest" over 20%, what you are doing is extracting that money (which isn't real until you turn it into fiat, btw) from the people in the future who lose money when the scheme inevitably crashes; they are transferring their future losses backward in time to you in the present. That's fine as far as it goes, if you're aware of what's going on, ethically comfortable with it, and make sure to get out of the scheme early enough to not yourself be one of the people left without a chair when the music stops. But from your comment, I think it seems like you aren't one of the people cynically taking advantage of the scheme, in which case, you are actually one of the marks. It is simply not possible for a scheme that is above board to pay over 4x the prevailing global interest rate, without significant risk.
  - monero-xmr 3y ago
    Wow you must know more than me, oh wise one /s I’ve been in crypto for 13 years now, I’m sure any day now Bitcoin will hit 0 and you’ll be proven right, and all the yield farms and defi will collapse, sure sure.
    - sanderjd 3y ago
      You seem to act like you're the only one here who has been following this for a long time... But that's far from the case on this particular forum. I didn't say anything about Bitcoin. But yes, all those yield farming schemes that are paying double digit "risk-free interest" will eventually crash out and leave some set of people in the red. It has happened over and over again, it's just that new tokens get set up and re-start the cycle.
      - monero-xmr 3y ago
        It's impossible for smart contracts that are properly coded to enable anyone to pull the funds out. Nothing is 100% guaranteed but protocols like Uniswap have been around for years, their contracts have had many professional audits, and the reward for breaking them is billions of dollars, so the odds of a bug in an Uniswap pool is very low. Other protocols pay incentives to LP the Uniswap pools. Where you expect the failure to come is perplexing, but yes you know more than me.

quickthrower2 3y ago

Meh Madoff outperformed that