If you were enjoying the 10,000% APY on DeFi projects, that was last week.

This week, it’s about seven figures. That’s right.

The latest attraction in the DeFi market is offering APYs of a million percent. On Hotdog, it went to 2 quadrillion percent at one point.

Thats over 2 quadrillion APY on this (scammy) new farm $HOTDOG, really just throwing out random numbers at this point.

The owner of this farm can steal all funds with 2 txs, would not recommend pic.twitter.com/rBcDHohdNg

— Foz (@fozcrypto) September 2, 2020

As to where this APY comes from, Trader Ledger Status explained,

“most money is created out of thin air. Yes, even in crypto! Newly minted coins are valued based on a minority of coins changing hands and establishing the price.”

It’s all about liquidity, one can take advantage of the opportunities only when there is enough liquidity; otherwise “most real money leaves. Zombies stay.”

And if you think… ‘But funds are SAFU,’ No, they aren’t in these fork of forks, unaudited protocols that dump hard within hours of their launch.

It all started with YAM, and much like that the hot potato (YAM) went to the moon only to fall hard like a rock, the latest entrants of the market are doing just the same.

Amidst the fast-paced decentralized finance (DeFi) sector, which has reached about $9.5 billion, developers have taken to copying the code and mint tokens with a catchy name, vegetables are preferred, and emojis are essential.

One doesn't even need to spend much effort or time to get listed, either. Anyone can list a token on the permissionless DEX Uniswap, and even centralized exchanges are all over these tokens.

The investors and traders deposit their ETH and other tokens into Uniswap’s liquidity pools in exchange for which they receive the meme coin they want.

The degens who first entered the project and drew more in, who are likely to be the project creators themselves and those with hefty pockets, make profits on the expense of who comes later by cashing out while there's still time.

Even participation doesn’t come cheap; small traders might not even find it beneficial given the huge transaction fees on the Ethereum network. As we reported, this week, the average fees jumped to a record high above $10.

The price of these illiquid tokens is also inflated to extreme levels by controlling the supply of ETH as happened in the case of HOTDOG, which crashed 99% within hours of its launch — from $4000 to $1 in just 5 minutes.

In DeFi, the rewards are high, and so is the risk with just as high the cost of participation.

The post Million Percent APYs and Pumps & Dumps is the New Way of Programmable Money first appeared on BitcoinExchangeGuide.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

188 +