Cryptocurrency

Vitalik Buterin has not participated in the yield farming

Recently, the excitement has seized the crypto community, thanks to the launch of YAM, a protocol of finances decentralized (DeFi), which promised its users the ability to perform “staking” in equal opportunities. However, not everyone jumped on the wave of the finance decentralized. So, the founder of Ethereum, Vitalik Buterin, told through his Twitter account that he has not actively participated in the yield farming.

The yield farming and the DeFi

For as has been developing, by 2020 it seems that will go down in history as the year in which finance decentralised entered with force in the crypto market. Well, after spending years building the basic infrastructure on which rests the crypto world. Organizations of the likes of Tron and Binance are beginning to focus their efforts on the DeFi, as a mechanism to deal with the traditional finance designed around Fiat money.

And within this impulse to finance decentralized, the yield farming is gaining unprecedented prominence. The same is a method to boost lending platforms decentralized, in that the users who participate invest a certain amount of money in the system, which will be used to provide loans in a decentralized way. In return, the investor will receive rewards in the token of the platform Setting out, in addition to the interest on the loan.

So, if the price of the token of the platform increases, the investor will get returns important on your capital. But if the platform fails, as happens with some frequency with this type of decentralized projects, then the investor could lose all your capital.

Despite the increase in the price of YFI, Vitalik Buterin has not participated in the yield farming. Source: CoinMarketCap

Despite these risks, in recent months, the crypto community has turned to investment in this type of projects yield farming. What has led to the increase in the price of currencies to as YFI, which has increased several times its value in the past few days. Or YAM, the latest project finance decentralized that ended in failure after only a few days of created.

Vitalik Buterin is not uploaded to the wave DeFi

However, not all are participating from the excitement generated by the yield farming. In fact, several of the main figures of the crypto world have warned against get too excited with this type of projects, recalling the negative effects that had the rise of the Initial Coin Offerings (ICO) in the year 2017. Being among those who have not risen yet to the wave of the DeFi, as Vitalik Buterin, who admitted via his Twitter account that he has not been involved in the yield farming:

“The truth I have not participated in the yield farming. I put some coins in uniswap a while ago, but retired after winning a few percentage points in commissions, but that was all.“

Adding in another tweet a warning to users of Ethereum in front of this type of projects:

“Reminder: you do NOT have to participate in ‘the last thing hot of the DeFi’ to be in Ethereum in fact, unless you really understand what is going on, it is probably best to sit or participate only very small amounts. There are many other types of dapps in ETH, we explore them!“.

In this way, Vitalik Buterin would be warning against an excess of emotion in front of these projects DeFi. Which, despite promise quick profits in a short time, on many occasions only to end up being a source of losses for those that invest in the same.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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