Decentralized Finance Yield Farming: following the Footsteps of Greedy Banksters?

Timotej Bodlaj

July 22, 2020

Decentralized Finance (DeFI) exploded in June as Compound token gained more than 500% in just three days (then lost over 55% in the next two weeks), followed by Balancer token gain of more than 230% in less than a day (which then also lost almost 60% in the next two weeks).

One month ago, almost nobody knew about yield farming*, but today it is the hottest topic in crypto. New yield farming opportunities are emerging almost daily, and even some existing crypto projects are joining the party. The following question comes to our mind:

Are we really building the new, decentralized monetary system which will disintermediate the greedy banksters, or are we just following their footsteps?

* Thenew term in crypto is "Yield Farming", a shorthand for cleverstrategies where putting crypto temporarily at the disposal on platforms toearn a high rate of return.
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