Sep 22, 2020 10:20 UTC
Sep 22, 2020 at 10:20 UTC
Yield farmers earn 500 percent returns, but numerous are unable to read smart contracts.
A CoinGecko analysis has originated that the majority of harvest farmers do not understand the smart contracts underpinning the DeFi protocols they use.
The majority of yield farmers do not understand how to read the possibly uncertain smart contracts that underpin the decentralized finance ecosystem — but that has not stopped them making enormous profits.
Crypto data market aggregator CoinGecko has issued its results from a survey of 1,347 of its users around yield farming, a discovery that 93% of respondents claim to have gained a financial return of at minimum 500%.
Though about half of the users are now farming with a smaller amount than $1,000, making high gas fees important anxiety in the community, smooth though 3 quarters were quiet willing to pay more than $10 in fees each transaction.
Although only 314 of the survey’s respondents specified, they have formerly contributed in yield farming, 59% of those who have tried farming endure to do so today.
In spite of the ‘degenerate’ standing of the sector, the survey originate 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%.
Around 90% of farmers are male, with 34% aged between 30 and 39, while 25% are in their twenties.
More yield farmers hold Ether (82.7%) than Bitcoin (74%), and 25.6% of farmers hold Chainlink, followed by Polkadot with 19.95%, Tron with 17.3%, and Litecoin with 15.7%.
Despite many DeFi projects distributing farming rewards in the form of governance tokens, only 11% of users expressed a desire to actually participate in governance. 54% of users primarily seek to hold their tokens, while 32% are farming to immediately sell.