When Borrowing On A DeFi Utility

“I think each DeFi protocol and every DeFi venture has a different degree of danger and a unique stage of reward,” stated Demirors. However, “it is vital to know the explanation the reward is excessive is as a result of the danger is increased. The reason we see excessive yield is there’s threat right here.”

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Part 2.6.25 is TON’s promise of decentralisation. It explicitly contrasts TON with Bitcoin and Ethereum, which run Proof-of-Work, which – aside from being a horrifying and reprehensible waste of energy and CO2 generator – has centralised as a result of economies of scale: the bigger you are, toncat.org the extra efficiently you may mine Bitcoin or Ethereum. TON uses a nominator system:

Quite the opposite to its perks, all trades, including yield farming, comes with a set of dangers. That’s particularly when good contracts may be riddled with bugs. That was exactly the case with the token YAM in August 2020. There’s over $400 million locked into YAM on Uniswap, but there was a bug after it transpired. Subsequently, its value crashed spectacularly from over $a hundred to around the $1 mark.

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