Cashing In or Losing Big on Cryptocurrency Yield Farms?
If something seems too good to be true, it probably is. Add cryptocurrency yield farms to that list. A complex investment strategy in decentralized finance markets, yield farming advertises eye-popping passively earned returns. While some investors boast impressive returns, for others the risks are unclear or even undisclosed before they invest, and the advertised returns never materialize. Research by Desautels Professor Patrick Augustin investigates the risks to investors chasing high yields in decentralized finance markets, finding that the risks in yield farming are not transparent, farms that advertise the highest yields systematically underperform, and that most investors don’t stake claims on the blockchain so don’t see their risks pay off.
Read
