Yield Farming Risks - Low Liquidity & Hidden Taxes

[@davey27]

thanks for the tips! very helpful!

[@SirLallington]

Eye opening advice as per usual, thanks my friend 😇🙏

[@SocialTrading]

thabks for the kind comment as usual! really appreciate it. :)

[@markbrown9162]

Already looking forward to the next one!

[@SocialTrading]

thanks Mark, much appreciated:)

[@BoondocksBotanicals]

great explanations!

[@SocialTrading]

thanks Mary - I'm trying :)

[@BoondocksBotanicals]

@@SocialTrading defi is both super simple and mind bendingly complex.

[@sov1972]

thanks for the video its great, one question, is there any risks in farming two well known stable coins?

[@SocialTrading]

Do you mean a stablecoin LP? So for instance DAI-USDC or something? They're definitely much much safer from what I can see due to the lack of impermanent loss... But there's still the counterparty risk, as the protocols which govern them could fail, however unlikely that may be. A lot of people have been worried about USDT for instance, but then if that goes, the effects would cause real problems throughout the entire space. The thing with stablecoin pairs is that everyone's aware they're safer due to no IL, so the pools are generally incredibly well subscribed and the APYs drop so low that only the most conservative / whale investors will be LPing those pairs. The higher rewards are always a payoff for the risk we're taking, so the stablecoin pairs usually offer the lowest yields in any given farm. Also depends on the farm itself - I'm so so much more wary now. Watch out for rugpulls - if there's a farm with a stablecoin pair offering high apys, it MAY* (obviously I cannot know) be a sign that people don't trust the actual farm itself, so few are investing , so the APY is still high despite the apparent low-risk opportunity.

[@sov1972]

@@SocialTrading thanks you very much

[@M.R.369.]

tankyou tom for making thies video i teel you abut may steratigy on nexo with ferst day pasyfincom dont fergat if you wanto start use may link ;)

[@SocialTrading]

Thanks Mohammad :)

[@frankjones9839]

Wow this is risky ever thought about just investing in an S&P index fund lol

[@cartaparaperu]

Just take calculated risks

[@SocialTrading]

:) always good to know what's out there though... what's developing, what's possible. but yep, its all brand new territory and super risky