[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 721 KB, 1920x1277, PooFarm.jpg [View same] [iqdb] [saucenao] [google]
22107358 No.22107358 [Reply] [Original]

Yield farming seems too good to be true, what's the catch biz?

>> No.22107394

>>22107358
the coin that you're depositing to provide liquidity is going to dump one day and make you lose money

>> No.22107419
File: 8 KB, 432x117, fuck it let's farm.png [View same] [iqdb] [saucenao] [google]
22107419

>>22107358
bumping because I also want someone smarter than me to explain. Went to stake DAI on YFFI and saw pic related. How the hell can they offer 59% roi *per week*???

>> No.22107428

>>22107358
printing money from thin air seems too good to be true but the fed does it

>> No.22107454

YOU CAN'T TAKE THE MONEY OUT

>> No.22107763

In a bubble, values go up, when the bubble 'pops' people cry foul. What every fucker misses is that almost every world market has an upward trend on a longer timescale. As far as timescales go, crypto is quick as can be. Granted, you can be stuck with/in dead projects. DYOR.

>> No.22108051

>>22107419
I have a question for you, actually. Are you actually getting paid in the currency, which you can trade and sell freely, or are they "holding" it for you so you can "sell" it "later"... but just not right now.

>> No.22108244

>>22107419

I think they're adding the weekly price change of YFFI into their ROI. Right now YFFI is up 57% so they're assuming you're holding and making it.

>> No.22108618
File: 164 KB, 1280x960, yieldfarming.jpg [View same] [iqdb] [saucenao] [google]
22108618

> deposit scam coin to act as collateral for another even scammier coin
> Hedge against it with multiple scam coins pic related
> Value of the deposited coin goes down
> You now owe money and are left holding shit like yam and sushi

>> No.22108738

>>22107358
like all crypto its all just an elaborate ponzi scheme. as soon as new money stops pouring in it will collapse and the bag holders will be wiped out.

>> No.22108746

>>22108618
Smooth brain alert

>> No.22108812
File: 64 KB, 618x597, disdain.jpg [View same] [iqdb] [saucenao] [google]
22108812

>>22108746
> One post by this ID
> No argument
Kek try harder shill you're not getting my linkies

>> No.22108879

>>22108812
Frankly I don't care if you put it into yaLink. I only put in as much as I'm willing to lose. Your explanation is full brainlet though.

>> No.22108905

>>22108879
Why would that be?

>> No.22109015
File: 107 KB, 1200x800, 1471257171281.jpg [View same] [iqdb] [saucenao] [google]
22109015

>Yield farming seems too good to be true, what's the catch biz?

>buy worthless shitcoin
>farm more of that worthless shitcoin
>hope that a greater retard will keep buying the worthless shitcoin so that he himself can farm more of the worthless shitcoin

The catch is that eventually people are going to realise that the worthless shitcoin is, indeed, a worthless shitcoin, at which point everyone will sell and the ponzi will collapse.

>> No.22109055
File: 563 KB, 630x487, EWbRviVUYAILL-Y.png [View same] [iqdb] [saucenao] [google]
22109055

>>22107358
If you don't get in and out in time, you'll be fucked. If you do, you'll make more money than you could ever make at your job.

Next gem is Butter Finance


>You missed KIMCHI
>You missed SUSHI
>You missed YAM
>You missed CREAM

people are making life changing money and you call everything a scam. this is your another chance. the next defi gem named after food is here.

Its starting to get shilled on twitter. Are you gonna let crypto twitter dunk on you again? Don't be a retard. Throw an eth.

https://uniswap.exchange/swap/0x79757A614959E2213396CEE721a547467da71020

>> No.22109089

>>22109015
Pretty much. The safest play is to hop in pools with no direct exposure to the underlying shitcoin. I get it, KIMCHI / ETH has a high APY and you want to chase it. But you are risking your ETH to a whale dumping. Just stake the USDC / ETH or something that you wouldn't mind exposure to anyway and sell those rewards off.

Don't play hot potato.

>> No.22109105
File: 9 KB, 200x267, 1441283182957.jpg [View same] [iqdb] [saucenao] [google]
22109105

>>22109055
> Muh crypto is food
> Muh farming
> Muh rug pull
> Muh scams

>> No.22109245

>>22109089
>>22108618
>>22109015

So, how long until this shit collapses and gas goes back to normal?

>> No.22109288

>>22108244
checked and spoonfeedpilled, thanks fren
So I guess you stake DAI, they buy YFFI, then sell the YFFI at profit later to give you the interest on the DAI?
Just makes zero sense to me. Definitely good to be true for now but in a year once things settle I'm looking forward to high, stable returns on the Tether I set aside to pay cap gains taxes with

>> No.22109352

>>22107358
something like this can happen where there are endless cascades of bankruptcies and liquidations causing everyone to get wiped out
https://en.wikipedia.org/wiki/Long-Term_Capital_Management

its gonna be quite a sight to behold when usdt gets exposed

>> No.22109364

>>22107394
how does this make me lose money?
sorry, still trying to wrap my head around yield farming
i thought the initial investment was safe, i would just reap less rewards
are you saying that i'd lose money because i'd be less liquid and unable to sell my initial if it dropped?

>> No.22109436

>>22107358
It's a pyramid scheme
Get in early and get out before it dumps
It really is that simple

>> No.22109454
File: 18 KB, 456x354, 15858192391203.jpg [View same] [iqdb] [saucenao] [google]
22109454

>>22107358
it was invented by igor nazbuterin so that gas fees would get crazy and everyone would buy his x-Dai

>> No.22109548

>>22109352
It's not going to happen though because you can always make another ERC20 token to replace any single one that crashes.

>> No.22109750

>>22109548
bro they are using the tokens as leverage to borrow more tokens to lend more tokens

>> No.22109751

>>22109364
You are giving these farmers your real coin (Eth, link, whatever) and they are giving you a fake coin in return (yam, butter, sushi) the hope is that they are getting so much liquidity from people like you that they can make "promises" of 2% daily yield. As long as everyone keeps pumping into the system it is fine. But when people stop pumping and start withdrawing the liquidity becomes scarce and the last people holding yam or butter will not have a way to "cash out" and get their coins back. Just the same old crypto game but it is very popular and gets a lot of pump action right now, so as long as you are early and can safely get out you will be fine

>> No.22109866

Also this.>>22109750


I just don't have enough money to get into the game but I know people are making money so dyor

>> No.22110009

>>22109751
damn, that makes it much scarier than i thought
might play with a conservative amount though

>> No.22110107

>>22109245
Not long. Once everyone realises the gas fees are absolute shit tier and the linkie oracle nodes start to lose shit tons of money serving useless price feeds the rug will be pulled. Keep your money in BTC. It's the fucking safest. Everything else is shitcoin roulette.

>> No.22110201

i spent 200 bucks just seeing what the buttons did on curve.fi

i'm getting crunchy gains trading YFV. not crazy about staking in these cartoony projects. the tokens can be lucrative, though.

>> No.22110280

>>22109751
Pretty much this. Know when to get in and out. You can also play it safe by farming with a stablecoin, assuming you have a large enough amount. So then you don't have to worry about the collateral dumping, and if you get in early enough you make nice gains. At that point you just have to know when to exit before the asset you're farming dumps.