Degen Yield Farm - Explore All There Is To Know!
Have you heard about the concept of Yield Farming in the crypto world?
You won’t believe it, but it’s a storm that has taken the crypto world by storm since 2020! In simpler words, it’s a process that has attracted millions of investors due to its ability to allow cryptocurrency holders to lock up their holdings, providing them with massive rewards.
The idea of yield farming can seem frightening at first, as it is with most things linked to blockchain and cryptocurrencies, but don’t worry! We’re going to cover all you need to know below, beginning with what it is, how it functions, and why you might be interested in learning more.
So what exactly is yield farming, and what does it mean for the world of crypto? How does Degen Yield Farming work? Let’s dive in!
If you’re someone who is into Cryptocurrency, then you’re definitely at the right place. We can give you the best practices in identifying red flags as well as help you in recovering your stolen money from scammers!
Table of Contents
What is a Degen Yield Farm & How Does It Work?
Until now, we know that Yield farming is nothing more than a method for depositing your tokens in a protocol and earning free cryptocurrency as interest.
However, Degen Yield farming, being a major method of it, is extremely dangerous. Basically, Degen stands for degenerate. These farms are so risky and lucrative that they can pay 4-5% interest per hour in the first few hours after their launch and 2-3% per week after that.
In fact, all degenerate farms work on a somewhat similar model. They have something known as a farm token. This farm token is the native token of the particular farm. Only this token is used to pay interest on any amounts owed. Also, by offering a marketplace for this token, the farm’s creators control what is known as its price.
Suppose you come up with your own cryptocurrency, known as PandaToken. Here you would have to choose the starting price at which it should be exchanged. Since you are doing it only for fun, you will most likely charge a very cheap price. Basically, it shows that the initial price of a token (farm token) can be set by its creator itself.
They would deposit one token and 1 USDT in the liquidity pool if they intended to sell tokens or $1. They would deposit $10 for each token in the liquidity pool or $100,000 for 1000 tokens if they wanted to sell it for $10. Not a big deal, right?
Remember that the value of these farm tokens is decreasing. This means that creators are free to print as much money as they like. However, the liquidity trapped in the pool is one thing you need to look into. If the amount locked is extremely small, know that it could be a scam. Wondering why? Because doing so would imply that not even the project’s creators have faith in it. Low liquidity also means high volatility. Even tiny transactions could cause token prices to change. We hope this makes things clear!
How Do Degen Yield Farms Make Money?
Are you wondering where this money even comes from?
I mean, knowing this is really important as it would help you make an effective investment decision. Hence, if you are really being paid a huge amount of APRs after an investment, let’s find out where that money is coming from and how the creators of a farm earn anything from it.
It turns out that there is a 4% fee for depositing anything other than the farm’s native token in the liquidity pool. As a result, if you put $100 worth of ETH into this pool, you would immediately be charged $4.
This is a crypto verse pyramid scheme. As a result, you will receive 4% of the amount given to someone who played the Degen game after you.
Is 4% relatively low for you? Stop, and think. Think that a good Degen yield farm has a total value that is locked up at anywhere between $100,000 and $4,000,000. Considering the number of people who want to YOLO their money, 4% can seem like a lot. No?
DO YOU SUSPECT THAT SOMEONE HAD SCAMMED YOU?
If you have suspicions of a scam or phishing attack, you can rely on experts to help you with protection, mitigation, and fund recovery.
You will feel safe knowing that experts with years of experience will be guiding you!
Where To Find Degen Yield Farms?
If you’re a risktaker and are not scared of losing everything to experience the world of crypto, then think no more and head to RugDoc.
It’s a website created out of a pure passion for DeFis and yield farming, examining the smart contract code of new farms in an effort to identify potential risks.
Go to rugdoc.io and find all the farms listed on their site. The creators of the site actually go through smart contracts and curate a list of farms sorted by risk factor. You have the option of filtering out the ones which are audited. Cool, right?
However, even a low-risk farm at RugDoc means you only have a few weeks before the farm collapses. Oops!
VFat is yet another effective tool that can help you access the website of the liquidity pool you are investing in.
You may be unable to communicate with the website because of increasing attacks and manipulation, preventing you from unlocking or exchanging your funds.
Hence, this is where Vfat comes in. It attacks these smart contracts in these farms and provides backend interaction support. Woah!
Scammers are constantly thinking of new ways to scam people through banking as the world evolves. We recommend you NOT invest in these farms. Know that there is no get-rich-quick scheme.
Always take time to research. Also, look for warning signs AT ALL times. Protecting your investments is extremely essential. Why lose your hard-earned money in a blink of an eye?
do you need help?
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