“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.”
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.