REAL FINANCE RFI

The benefits and risks of yield farming The main benefit of yield farming is self-evident: you get to hold your cryptoassets and earn some extra return on top of that. There are several risks to yield farming. The most common risks are from DApp developers, smart contracts, and market volatility. DApp developers might steal deposited assets or squander them. Smart contracts could have flaws or exploits that lock or allow funds to be stolen. Market volatility can cause something called impermanent loss, which largely affects DEX liquidity pools. The best way to mitigate yield farming risks is to research projects before you deposit anything, and to stick with projects that have a long track record.