There are many similarities between the yield farming boom we're currently in the middle of and the ICO boom of 2017: greed is the main driver (this time it's the desire to find the next 1000% APY farming opportunity instead of 100x ICO opportunity) and the permissionless nature of Ethereum makes it easy for anyone to participate (so there are lots of scams and low quality projects involved). These factors make it easy for outsiders to dismiss what's happening as an irrational short-term blip.We think yield farming is important to pay attention to and here to stay though. In a zero interest-rate environment globally, the demand for yield is stronger than ever before. The 1000% APY opportunities may not be sustainable and the future of yield farming may look much different than the current form, but we believe that the masses are coming to crypto for yield and many options of different forms bodes well for the future.
1confirmation Newsletter - Issue #88
1confirmation Newsletter - Issue #88
1confirmation Newsletter - Issue #88
There are many similarities between the yield farming boom we're currently in the middle of and the ICO boom of 2017: greed is the main driver (this time it's the desire to find the next 1000% APY farming opportunity instead of 100x ICO opportunity) and the permissionless nature of Ethereum makes it easy for anyone to participate (so there are lots of scams and low quality projects involved). These factors make it easy for outsiders to dismiss what's happening as an irrational short-term blip.We think yield farming is important to pay attention to and here to stay though. In a zero interest-rate environment globally, the demand for yield is stronger than ever before. The 1000% APY opportunities may not be sustainable and the future of yield farming may look much different than the current form, but we believe that the masses are coming to crypto for yield and many options of different forms bodes well for the future.