Not everything crypto is Bitcoin (BTC), not everything DeFi is Ethereum (ETH) friendly: Vitalik Buterin is playing a bit of Sheriff in a sector that is now over $ 4 billion. Warnings always actually convey the messages communicated over and over again, as to the reality of any financial investment: Caution, any level of potential gain is associated with a level of proportional risk, keep a cool head, resist the latest trends. in fashion that have not yet proven themselves.
Is yield farming worthy of interest?
Vitalik Buterin recently spoke on Twitter about the hype surrounding yield farming.
The founder ofEthereum explains that its own interactions with DeFi protocols linked to yield farming were limited to the placement of a few tokens on Uniswap, it’s been quite a while.
Buterin added that he earned a small percentage in remunerative interest, before withdrawing his funds.
Source : Image via Twitter
His reserved stance is the exact opposite of strong supporters of yield farming. This tweet is certainly not trivial since it coincides with the announcement of the collapse of Yam Finance : This event does not seem to affect the supporters of the project, however, who qualify it as an interesting experiment.
The main developers ofEthereum as Peter Szilagyi, did not hesitate to voice their stance against trendy initiatives that have not been tested and approved beforehand.
By the way, if you want to know more about what Yield Farming is, this is where it’s happening.
Buterin: the target for risky projects
Within the community Ethereum, Vitalik Buterin is certainly the one who maintains the most relations with the developers of decentralized applications.
His opinions and publications have inspired the launch of several projects, among which Uniswap or the mechanisms ofAutomated Market Maker (AMM).
The crowd around Yam Finance seems to have decided to send a warning to the community: in a parallel thread, he does indeed suggest caution before embracing the latest DeFi trending trends.
Source : Image via Twitter
Yield farming is a lucrative business, but it also carries significant risks associated with dilution and collapsing prices.
Yam Finance is unfortunately the concrete illustration of this type of risk: its developers had nevertheless used pre-existing code audited by Synthetix.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Should we put yield farming in oblivion and throw the key into a bottomless hole? A minimum of regulation could make the difference. Is there a Sherif in the DeFisphere?
Vitalik Buterin Smart contracts used intelligently.
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