Yield farmers make 500% returns, but most can't read smart contracts
Yield farmers make 500% returns, but most can't read smart contracts
A CoinGecko survey has plant that the bulk of yield farmers do not empathise the smart contracts underpinning the DeFi protocols they apply.
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The majority of yield farmers do not sympathise how to read the potentially risky smart contracts that underpin the decentralized finance (DeFi) ecosystem — merely that hasn't stopped them making huge profits.
Crypto market data aggregator CoinGecko has published its findings from a survey of ane,347 of its users about yield farming, finding that 93% of respondents claim to have reaped a financial render of at to the lowest degree 500%.
However around one-half of users are currently farming with less than $1,000, making high gas fees a significant concern in the customs, even though 3 quarters were notwithstanding willing to pay more than than $10 in fees per transaction.
While simply 314 of the survey'south respondents indicated they take previously participated in yield farming, 59% of those who have tried farming go on to do so today.
In spite of the 'degenerate' reputation of the sector, the survey found the typical yield farmer is a fairly level-headed crypto investor — with 68% of users responding that they practise not leverage their positions to minimize risk, and 49% refusing to invest in unaudited protocols.
But 40% of DeFi users claimed they were able to interpret smart contracts underpinning the protocols they farm with.
Yield farming is a global miracle with 31% of users are located in Europe, followed past Asia with 28%, Northward American with xviii%, Africa with 10%, South America with 7%, and Oceania with 4%.
Around 90% of farmers are male person, with 34% aged between 30 and 39, while 25% are in their twenties.
More yield farmers hold Ether (82.vii%) than Bitcoin (74%) and 25.6% of farmers concord Chainlink, followed by Polkadot with 19.95%, Tron with 17.3%, and Litecoin with fifteen.7%.
Despite many DeFi projects distributing farming rewards in the form of governance tokens, but xi% of users expressed a want to actually participate in governance. 54% of users primarily seek to hold their tokens, while 32% are farming to immediately sell.
Source: https://cointelegraph.com/news/yield-farmers-make-500-returns-but-most-can-t-read-smart-contracts
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