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Please take caution and do your due diligence before using any #DeFi protocol or farming that yield 
This is all still very new and we're figuring out what works, that being said not all protocols have equal risk levels
Thread on the risk appetite spectrum for #DeFi below
This is all still very new and we're figuring out what works, that being said not all protocols have equal risk levels
Thread on the risk appetite spectrum for #DeFi below
LOW
Use Decentralized Exchanges to buy/sell tokens, then simply hold them in your wallet
Uses DeFi applications for a only a brief moment in time, limited attack surface, but avoid infinite token approvals!
@UniswapProtocol @KyberSwap @1inchExchange @DEXAG_TokenWire
Use Decentralized Exchanges to buy/sell tokens, then simply hold them in your wallet
Uses DeFi applications for a only a brief moment in time, limited attack surface, but avoid infinite token approvals!
@UniswapProtocol @KyberSwap @1inchExchange @DEXAG_TokenWire
MEDIUM
Lend tokens to a Money Market or Automated Market Maker and earn interest / trading fees
This and below have higher risk as your funds are held in a smart contract that may have an admin key or governance risk
@compoundfinance @AaveAave @CurveFinance @BalancerLabs
Lend tokens to a Money Market or Automated Market Maker and earn interest / trading fees
This and below have higher risk as your funds are held in a smart contract that may have an admin key or governance risk
@compoundfinance @AaveAave @CurveFinance @BalancerLabs
HIGH
Deposit tokens to a money market to use as collateral for a loan to go leveraged long or hedge risk
Subject to liquidations if collateral drops in value and/or borrowing asset increase in value, includes price oracle risk
@MakerDAO @AaveAave @compoundfinance @futureswapx
Deposit tokens to a money market to use as collateral for a loan to go leveraged long or hedge risk
Subject to liquidations if collateral drops in value and/or borrowing asset increase in value, includes price oracle risk
@MakerDAO @AaveAave @compoundfinance @futureswapx
VERY HIGH
Full out degen yield farming mode, basically any of the yield farming threads I have been posting that uses six or more DeFi protocols/tokens at a time
Your risk increases proportionally to every additional exciting but unproven protocol used https://twitter.com/ChainLinkGod/status/1274839481074343936?s=19
Full out degen yield farming mode, basically any of the yield farming threads I have been posting that uses six or more DeFi protocols/tokens at a time
Your risk increases proportionally to every additional exciting but unproven protocol used https://twitter.com/ChainLinkGod/status/1274839481074343936?s=19
This is just a brief summary of the spectrum of risk in #DeFi, I am missing many protocols and use cases here
Always do your own research
If you don't know what you're doing, take a step back, absorb info, process it, make a plan, then take a slow but steady approach
Always do your own research
If you don't know what you're doing, take a step back, absorb info, process it, make a plan, then take a slow but steady approach
And as always, this is not financial advice, DeFi is NOT risk free
There is a reason the APYs are so high, these returns come with strings attached
This could all come crashing down at any moment because of poor oracle practices, weak security models, lack of audits, etc
There is a reason the APYs are so high, these returns come with strings attached
This could all come crashing down at any moment because of poor oracle practices, weak security models, lack of audits, etc
