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Yield farmers make 500% returns but most can't read smart contracts


The majority of yield farmers do not understand how to read the potentially risky smart contracts that underpin the decentralized finance (DeFi) ecosystem — but that hasn’t stopped them making huge profits.


Crypto market data aggregator CoinGecko has published its findings from a survey of 1,347 of its users about yield farming, finding that 93% of respondents claim to have reaped a financial return of at least 500%.


However around half of users are currently farming with less than $1,000, making high gas fees are a significant concern among the community, even though three quarters were still willing to pay more than $10 in fees per transaction.


While only 314 of the survey’s respondents indicated they have previously participated in yield farming, 59% of those who have tried farming continue to do so today.


In spite of the ‘degenerate’ reputation of the sector, the survey found the typical yield farmer is a fairly level-headed crypto investor — with 68% of users responding that they do not leverage their positions to minimize risk, and 49% refusing to invest in unaudited protocols.


Just 40% of DeFi users claimed they were able to interpret smart contracts underpinning the protocols they farm with. 


 Yield farming is a global phenomenon with 31% of users are located in Europe, followed by Asia with 28%, North American with 18%, Africa with 10%, South America with 7%, and Oceania with 4%. Read More


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