An increasing number of cryptocurrency investors are embracing yield farming, one of the latest innovations in the crypto industry, where crypto assets are used to aggregate income for the investors, in some cases up to 100% Annual Percentage Yield (APY).
Even though yield farming as a form of decentralized finance (DeFi) can be profitable, some key players in the industry like the co-founder of Ethereum, Vitalik Buterin, are still skeptical about the real sustainability and activities of the booming DeFi sector.
For Buterin, in addition to disappointments associated with the DeFi craze like yield farming, he can only watch yield farming from a distance in the meantime, whether it is profitable or not, as he firmly holds that it may not be secure enough for sectors in the crypto mainstream industry.
The Ethereum co-founder would instead recommend buying stablecoin, than undertaking uncertain risks for what seems to be only a mere short-term advantage.
Expressing his stance, Buterin today tweeted.
I personally am steering clear of the yield farming space completely until it settles down into something more sustainable. But I’m not particularly a “smart mind in defi” so…. https://t.co/1Db86JwP0D
— vitalik.eth (@VitalikButerin) August 31, 2020ing
This is not the first time Vitalik Buterin has shared his opinion about DeFi. In an interview last month, Buterin warned that investors are underestimating the risks associated with decentralized finance.
People “should not necessarily be treating a kind of temporary advantage that we have now as things that we should be pushing out in front of the entire world or as reasons why everyone should get into DeFi,” Buterin said.
He added, “because if you push them out to the entire world, then by the time people start getting into DeFi, these kinds of temporary advantages are not going to be there anymore.”
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