DeFi Yield Farming: Why It's All the Rage But Risky - Ep.180

Published: July 7, 2020, 7:30 a.m.

b"Dan Elitzer, investor at IDEO CoLab Ventures, and Will Price, data scientist at Flipside Crypto, discuss the yield farming craze. In this episode, we cover:\\n the goals of protocols offering liquidity mining\\n the goals of users yield farming right now\\n whether users of Compound will have much awareness of COMP in the future\\n how Compound is trying to dampen inorganic activity and properly align incentives\\xa0\\n how incentives in one DeFi protocol can screw up another's such as changes in Compound's liquidity mining program causing Dai to lose its peg\\n whether the activity created by liquidity mining is sustainable and how\\n whether Compound is overvalued and how to determine valuations for DeFi tokens\\n the security risks that come with trying yield farming\\n how teams can keep their protocols safe given the composability of DeFi and the growing number of developments in the space\\n whether the yield farming craze will cause the price of ETH to rise and why the prevalence of stablecoins might prevent that\\n whether new DeFi tokens could push flagging layer 1s out of the top 10\\n what will happen if even more Bitcoin comes to DeFi\\n how the next big thing in DeFi might be trying to stack yield across protocols and eventually prime brokerage protocols\\n Thank you to our sponsor!\\n Crypto.com: https://www.crypto.com\\n \\xa0\\n Episode links:\\xa0\\n Dan Elitzer: https://twitter.com/delitzer\\n IDEO CoLab Ventures: https://www.ideocolab.com/ventures/\\n Will Price: https://twitter.com/will__price\\n Flipside Crypto: https://flipsidecrypto.com\\n \\xa0\\n Total value locked in Compound: https://defipulse.com/compound\\n \\xa0\\n What liquidity bootstrapping pools are: https://medium.com/balancer-protocol/building-liquidity-into-token-distribution-a49d4286e0d4\\xa0\\n \\xa0\\n Dan on earning more from borrowing USDT than lending it on Compound: https://twitter.com/delitzer/status/1272642107128164354\\xa0\\n \\xa0\\n Tony Sheng on how yield farming works and how much you can earn from it: https://twitter.com/tonysheng/status/1274393189231689728\\n \\xa0\\n And his followup on the risks of yield farming: https://twitter.com/tonysheng/status/1274780457729617920\\n \\xa0\\n The purpose of COMP for governance: https://medium.com/compound-finance/compound-community-ownership-ee0ed1252cc3\\xa0\\n https://medium.com/compound-finance/expanding-compound-governance-ce13fcd4fe36\\n \\xa0\\n Risks of so much BAT being held in Compound: https://twitter.com/spencernoon/status/1276897377446776832?s=20\\n https://twitter.com/defiprime/status/1277026665952980992?s=20\\n https://twitter.com/devops199fan/status/1274732220192829441?s=20\\n \\xa0\\n Cyrus of MakerDAO concerned about the risks COMP poses to the Dai peg: https://forum.makerdao.com/t/upcoming-comp-farming-change-could-impact-the-dai-peg/2965\\n \\xa0\\n Dan Guido and Taylor Monahan on Unchained discussing DeFi security: https://unchainedpodcast.com/defi-security-with-so-many-hacks-will-it-ever-be-safe/\\n \\xa0\\n Twitter discussion on whether ETH price will rise due to yield farming: https://twitter.com/RyanSAdams/status/1274781676875452421\\n \\xa0\\n What will happen to other Layer 1s? https://twitter.com/Shaughnessy119/status/1274376237239189504?s=20\\xa0\\n Aquaponic yield farming: https://bankless.substack.com/p/aquaponic-yield-farming\\nLearn more about your ad choices. Visit megaphone.fm/adchoices"