Currently, there is a huge bubble in the DeFi market, and in the case of liquidity supply (LP) yield farming, which has been incorrectly entered, there is a risk that a large asset loss may occur due to a huge price collapse in a short period of time, unexpected contract errors, and scam projects. It is true.
However, I personally think it is quite a smart investment to use the interest rate stablecoin related investment products that have their own relative advantage behind the tremendous price increase of the DeFi project native (governance) token and the tremendous short-term high yield of Yild Farming .
We will briefly summarize DeFi products that can receive higher interest rates than deposit interest in traditional financial markets by using stablecoins as of the current standard.
Among the various products currently offered by DeFi and CeFi, there are quite a few that can get quite high APY. Some of these are digital assets with high price volatility (BTC, ETH, etc.) in pairs, while others are LPs composed of heterogeneous stablecoins . The choice will vary slightly depending on your investment tendency, your current position, and your preference for risk, but LP composed of stablecoins is a product that you need to experience at least once in a situation where APY is high as it is now. .
I don't know anything else, but thanks to the success of DeFi, the fact that exchanges gradually move their digital assets to personal wallets and more people use personal wallets is a really big move in the crypto scene.
