Vitalik Buterin has not participated in yield farming

Recently, excitement has gripped the crypto community with the launch of YAM, a decentralized finance protocol (DeFi) that promised its users the ability to perform „staking“ on an equal opportunity basis. However, not everyone rode the wave of decentralized finance. Thus, the founder of Ethereum, Vitalik Buterin, commented through his Twitter account that he has not been actively involved in yield farming.

YAM collapsed leaving suffering in crypto DeFi

Yield farming and the DeFi
The way it has been developing, 2020 seems to go down in history as the year when decentralized finance entered the crypto market in force. Well, after spending years building the basic infrastructure on which the crypto world is based. Organizations such as Tron and Binance are beginning to focus their efforts on DeFi, as a mechanism to deal with traditional finance designed around Fiat money.

And within this drive for decentralised finance, yield farming is taking on unprecedented importance. It is a method for boosting decentralized lending platforms, in which participating users invest a certain amount of money in the system, which will then be used for decentralized lending. In return, the investor will receive rewards on the DeFi platform token, in addition to interest on the loan.

Thus, if the price of the platform token increases, the investor will get significant returns on his or her capital. But if the platform fails, as is often the case with such decentralized projects, then the investor could lose all his capital.

Despite these risks, in recent months the Bitcoin Code crypto community has turned to investing in this type of yield farming project. This has led to the increase in the price of currencies such as YFI, which has increased several times its value in recent days. Or YAM, the latest decentralized finance project that ended in failure after only a few days of creation.

YFI increases 50% thanks to the Binance effect

Vitalik Buterin does not ride the DeFi wave
However, not everyone is participating in the excitement generated by yield farming. In fact, several of the world’s leading crypto figures have warned against getting too excited about this type of project, recalling the negative effects of the rise of Initial Coin Offerings (ICOs) in 2017. Among those who have not yet joined the wave of DeFi, such as Vitalik Buterin, who admitted through his Twitter account that he has not participated in yield farming:

„I haven’t really participated in yield farming. I put some coins in uniswap some time ago, but I withdrew them after earning a few percentage points in commissions, but that was it.

Adding in another tweet a warning for Ethereum users against this type of project:

„Reminder: You don’t have to participate in ‚the last hot thing in the DeFi‘ to be at Ethereum in fact, unless you really understand what’s going on, it’s probably best to sit down or participate in only very small amounts. There are many other types of dapps at ETH, explore them!