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27673257 No.27673257 [Reply] [Original]

Can someone please explain why these liquidity farming projects do so well? I'm always afraid that whales will just farm up a shit ton and dump their farmed profits on market thus driving price down. Why am I so retarded and not understanding the appeal?

>> No.27673374

DEFI is the in thing right now in crypto

>> No.27673508
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27673508

>>27673257
i don't get it either but the mascot is cute so i boughted

>> No.27673632

>>27673374
yes but how do I identify what defi projects will do well? Like are there any key elements? Like I got into SUSHI, RBC and DEXG, which are also defi, because I get the appeal of dexes. However, I just don't get what was/is appealing about BAO or ALPHA? Like those just completely flew under the radar for me.

>> No.27673692

>>27673257
You want liquidity farming whose yield has a fee share element. Otherwise it's just a farm and dump.

Harvest.finance for example gets 30% of all profits made on the front page depositors. They're so profitable that the buybacks so the yield will continue to accrue in value.

Same deal with Badger, Sushi, etc.

>> No.27673791

>>27673692
**so profitable that the buybacks outweigh the emissions

Fat fingers on mobile

>> No.27674105
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27674105

>>27673257
Most fail in the first month actually

>> No.27674131

>>27673692
thank you. that sounds very semitic but I guess i get the appeal? people want to hodl forever. Human nature would have it that eventually one weak link could start a chain reaction (of sells).

>> No.27675362

>>27674131
Sellers come and go, but as long as token actually generates income then there will always be buyers.

DAO only tokens will go the way of the dodos. FARM, BADGER, SUSHI, 1INCH , etc. will eventually replace the first gen DAO only tokens like YFI, COMP, UNI, etc.

Think of these new generation of Defi tokens as high yield dividend stocks, you can actually do a price to earnings analysis on them, they have inherent value in the form of NPV of future income and that isn't purely speculative.

>> No.27676214

>>27673257
You need to be able to tell the difference between <Generic food token farm and dump> and the likes of BAO, ALPHA, FARM, BADGER, etc.

The devil is in the detail. Like >>27673692
mentioned, the yield has to have inherent value or people will just dump it endlessly.

You actually have to DYOR on defi tokens, you can't just chase your IOTAs, and your NANOs and <x 2017 ico shitcoin> and hope people dumber than you will buy into it.

>> No.27676509

>>27676077
go to https://aries.financial/club and use referral code 9.

farming with referral income

>> No.27676907

>>27676509
Scam

>> No.27677348

>>27675362
>>27676214
thank you for pointing out some stuff to look out for. I'll atleast know what things to research. Do you guys also recommend getting telegram?

>> No.27677438

>>27673257
how do you miss something thats still happening, you can still farm bao.

>> No.27677762

>>27676907
nope