Yield farming?

[Anonymous No.22095276]

I'm trying to understand yield farming and the inherent risks (i am not looking to do it since too many fears of losing any of my link) but am just wondering how does it even work? You provide liquidity to a company and they give you their fake tokens that other people who gave them also their money get? And then when that smart contract finishes or you terminate it you walk away with what you had + the new yielded token?
Can someone tell me if im understanding that right? Wouldn't there be very little real liquidity if a bunch of holders are all doing the same thing and looking to cash out on each other? if thats the case, then are people doing this with smaller amounts instead? Im assuming the underlying tokens they give you in return dont actually do anything? Not trying to fud or shill, genuinely just trying to fucking understand it since im trying to understand the point / why of it all
>t. 2017 40k link holder

[Anonymous No.22095523]

>>22095276
it’s like musical chairs of doing complete bullshit pretty much, in order to make number go up

[Anonymous No.22095617]

>>22095523
this sounds about right
see pic related and tell me that it isn't too good to be true

[Anonymous No.22095791]

>>22095617
Even bitconnect was more sustainable than this.

[Anonymous No.22095869]

It's fractional reserve banking.

[Anonymous No.22095926]

>>22095276
what you should be excited about as a link holder is when all this comes crashing down most of that money is going to flee back into link.

[Anonymous No.22095976]

>>22095926
A lot of retards will lose their staked LINK, which will then be sold by scammers and dump the price of the entire market. Just like ETH got dumped back down to double digits by ICO scammers.
I think this ponzi will keep rolling until the end of the bullrun though.

[Anonymous No.22096109]

>>22095276
yield farming is just finance without bank fees. People are suddenly shocked by how much excess fat is in the system when there are no banks. WAKE THE FUCK UP

[Anonymous No.22096418]

>>22096109

Shut the fuck up. Its rising because fomo from pajeets. This is why ETH gas fees are so high.

It works exactly like a ponzi scheme and soon as the early ones pull their yields it will start to tumble

[Anonymous No.22096662]

>>22096418
this.
Once the ponzi is over people will rush back into link and link will skyrocket.
Might as well just hold link.
Or roll the dice and risk losing everything.

[Anonymous No.22097349]

I guess I'll ask in this thread since its quiet, what the fuck happened to all the statera shills, did they finally leave /biz/? Its nice I'm not complaining, just weird.

[Anonymous No.22097470]

Somebody please explain how taxes work with this shit

[Anonymous No.22097779]

>>22095617
yeah this seems super unsustainable then desu, how much risk is there right now / are people losing a ton? i think defi can be powerful but this just seems like its a ponzi scheme basically

[Anonymous No.22097826]

>>22097349

They are getting paid to shill Sushi, or other Defi tokens today

[Anonymous No.22097930]

>>22097826
makes sense

[Anonymous No.22098007]

>>22095276
When it comes to doing it with LINK pic related is a pretty good explanation. This is all abstracted out by the yaLINK yearn vault. I am in a similar spot to you, I have a 33k stack and I'm too scared to risk a significant portion of my stack on it. I did put 1000 LINK in though just to see what it was like. Gas wasn't so ridiculous when I put that in though, not sure if it would be worth doing today. I think I spent like $40 end to end when I got my LINK into the vault a week ago, wouldn't be surprised if you'd be spending something like $200 today.

[Anonymous No.22098037]

>>22097779
>>22095276
big brain arthur's take on it all:
https://blog.bitmex.com/dreams-of-a-peasant/
he calls it exactly that defi schemes are protobanks
this is just the fluff btw, the post itself is a lot better

>The majority of DeFi projects require staking and some sort of uneconomical activity. As a reward for your participation you are able to farm a token created out of thin air with dubious ownership claims to any potential income stream of the project. The memes are hilarious (YAM, BASED, etc.), and the fact that these tokens are worth more than zero is a testament to the financial repression hoisted upon savers by the all-powerful central bankers.
>When faced with severe income inequality, and free money (for the fortunate), financial speculation will surge. Would you rather work for 30 years for stagnant to negative real income gains in service to a mega-corporation, or would you rather come play in the intellectual casinos that are the financial markets? At least at the casino you can visualise yourself hitting it big quickly. I imagine many “essential” workers are just so happy they can serve humanity for below average wages.
>Against this potentially dystopian backdrop where greater than 50% of the population is on some sort of basic income, trading worthless memes under the guise of innovative technology ceases to be so daft.

[Anonymous No.22098253]

>>22098007
>that image
lmao, if this is actually an accurate representation of how these yield scams operate, then this is the most retarded rube goldberg contraption of shit I've ever seen. Let's just go back to pow3d clones where at least the scamming mechanism is simple and out in the open.

[Anonymous No.22098302]

>>22098253

the fucked up part is that is exactly what the financial markets were like in 2008 before the crash.

honestly this makes me fucking sacred for Crypto. I hold around 15K link since 2017 but im worried that this bubble is going to start suddenly now and crash very fast too from this Yield shit

[Anonymous No.22098372]

>>22098253
lol yeah it's retarded but its working right now. Yields are steadily dropping though and will probably continue to do so. 50-60% APY is definitely too good to be true but that doesn't mean its necessarily all going to collapse. The could just get bid down to a reasonable level.

[Anonymous No.22098375]

>>22098253
That's one strategy for one vault. Providing liquidity on Uniswap and then depositing those LP tokens on Sushi to farm and dump a token is another. The farming judaism is on a sliding scale.

[Anonymous No.22098407]

>>22098302
idk this is exactly what the margin lending craze on bitfinex and poloniex felt like in early 2017, and that miraculously never ended up blowing up in a big way. Bitconnect did sure but that was a lot shadier.

[Anonymous No.22098429]

>>22098302
Hopefully it will be limited to ETH and defi tokens when it pops. So long as BTC doesn't get dragged down with it, crypto as a whole should survive. Yeah everyone hates BTC, fuck em, it's the one project not pretending to be anything other than what it is (that and Monero)

[Anonymous No.22098479]

>>22095976
The defi bubble burst will be so fucking ugly. I'm actually terrified.

[Anonymous No.22098534]

>>22098479
lol there is not point being afraid. It will just be funny if/when it happens

[Anonymous No.22098609]

>>22098007
>>22098037
thx guys honestly legit not trying to fud or shill any of this shit, and attempting to give it the benefit of the doubt but my inner gut is just screaming that its a scam. Like when people are talking about 10-20% gains a day in yields. Doing it with a 40k stack that would get me something like $64k-$128k which seems like its too good to be true which is why i got my defectors up on this shit. Not sure if its an excuse for them to try and take my linkies.

[Anonymous No.22098639]

>>22098534
>>22098534
I mean I’ll laugh but if it delays link hitting 4 digits by a few more years that’s gonna suck

[Anonymous No.22098682]

So, rug pull by end of year? Sooner? What’s your guys predictions?
>trump wins
>btc hits $20k on xmas
>link hits $50 (arbitrum, Oracle)
>crash to btc $8k
>recharge all of 2021 for enterprise bubble of 2022

[Anonymous No.22098717]

>>22098479
i think its still really early as a bubble but the longer it goes on without popping, the messier its going to get imo. Fwiw im specifically talking about the defi projects that are launching shit with un-audited smart contracts that brainlets are throwing their money into, i know there are some legitimate defi projects that are more sustainable in premise

[Anonymous No.22098738]

>>22096109

Based.

[Anonymous No.22098807]

>>22098639
I don't think it will. If anything people will stop daytrading defi shitcoins at that point and just park their money in LINK

[Anonymous No.22098816]

It's all too good to be true, someone's got to loose eventually this insane amount of money doesn't come from nothing.

[Anonymous No.22099987]

I assume the governance tokens will crash some eventually, the high valuations for these are what is making tbe returns so good. Not sure this is as bad a bubble as 2017, that was tons of erc20s with literally no use case.

[Anonymous No.22100034]

That and pools will get larger. We are def early