I'm trying to understand yield farming and the inherent risks (i am not looking to do it since too many fears of losing any of my link) but am just wondering how does it even work? You provide liquidity to a company and they give you their fake tokens that other people who gave them also their money get? And then when that smart contract finishes or you terminate it you walk away with what you had + the new yielded token?
Can someone tell me if im understanding that right? Wouldn't there be very little real liquidity if a bunch of holders are all doing the same thing and looking to cash out on each other? if thats the case, then are people doing this with smaller amounts instead? Im assuming the underlying tokens they give you in return dont actually do anything? Not trying to fud or shill, genuinely just trying to fucking understand it since im trying to understand the point / why of it all
>t. 2017 40k link holder
Yield farming?
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it’s like musical chairs of doing complete bullshit pretty much, in order to make number go up
this sounds about right
see pic related and tell me that it isn't too good to be true
Even bitconnect was more sustainable than this.
It's fractional reserve banking.
what you should be excited about as a link holder is when all this comes crashing down most of that money is going to flee back into link.
A lot of retards will lose their staked LINK, which will then be sold by scammers and dump the price of the entire market. Just like ETH got dumped back down to double digits by ICO scammers.
I think this ponzi will keep rolling until the end of the bullrun though.
yield farming is just finance without bank fees. People are suddenly shocked by how much excess fat is in the system when there are no banks. WAKE THE FUCK UP
Shut the fuck up. Its rising because fomo from pajeets. This is why ETH gas fees are so high.
It works exactly like a ponzi scheme and soon as the early ones pull their yields it will start to tumble
this.
Once the ponzi is over people will rush back into link and link will skyrocket.
Might as well just hold link.
Or roll the dice and risk losing everything.