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Listen "DeFi Yield Farming: Why It's All the Rage But Risky - Ep.180"
Episode Synopsis
Dan Elitzer, investor at IDEO CoLab Ventures, and Will Price, data scientist at Flipside Crypto, discuss the yield farming craze. In this episode, we cover:
the goals of protocols offering liquidity mining
the goals of users yield farming right now
whether users of Compound will have much awareness of COMP in the future
how Compound is trying to dampen inorganic activity and properly align incentives
how incentives in one DeFi protocol can screw up another's such as changes in Compound's liquidity mining program causing Dai to lose its peg
whether the activity created by liquidity mining is sustainable and how
whether Compound is overvalued and how to determine valuations for DeFi tokens
the security risks that come with trying yield farming
how teams can keep their protocols safe given the composability of DeFi and the growing number of developments in the space
whether the yield farming craze will cause the price of ETH to rise and why the prevalence of stablecoins might prevent that
whether new DeFi tokens could push flagging layer 1s out of the top 10
what will happen if even more Bitcoin comes to DeFi
how the next big thing in DeFi might be trying to stack yield across protocols and eventually prime brokerage protocols
Thank you to our sponsor!
Crypto.com: https://www.crypto.com
Episode links:
Dan Elitzer: https://twitter.com/delitzer
IDEO CoLab Ventures: https://www.ideocolab.com/ventures/
Will Price: https://twitter.com/will__price
Flipside Crypto: https://flipsidecrypto.com
Total value locked in Compound: https://defipulse.com/compound
What liquidity bootstrapping pools are: https://medium.com/balancer-protocol/building-liquidity-into-token-distribution-a49d4286e0d4
Dan on earning more from borrowing USDT than lending it on Compound: https://twitter.com/delitzer/status/1272642107128164354
Tony Sheng on how yield farming works and how much you can earn from it: https://twitter.com/tonysheng/status/1274393189231689728
And his followup on the risks of yield farming: https://twitter.com/tonysheng/status/1274780457729617920
The purpose of COMP for governance: https://medium.com/compound-finance/compound-community-ownership-ee0ed1252cc3
https://medium.com/compound-finance/expanding-compound-governance-ce13fcd4fe36
Risks of so much BAT being held in Compound: https://twitter.com/spencernoon/status/1276897377446776832?s=20
https://twitter.com/defiprime/status/1277026665952980992?s=20
https://twitter.com/devops199fan/status/1274732220192829441?s=20
Cyrus of MakerDAO concerned about the risks COMP poses to the Dai peg: https://forum.makerdao.com/t/upcoming-comp-farming-change-could-impact-the-dai-peg/2965
Dan Guido and Taylor Monahan on Unchained discussing DeFi security: https://unchainedpodcast.com/defi-security-with-so-many-hacks-will-it-ever-be-safe/
Twitter discussion on whether ETH price will rise due to yield farming: https://twitter.com/RyanSAdams/status/1274781676875452421
What will happen to other Layer 1s? https://twitter.com/Shaughnessy119/status/1274376237239189504?s=20
Aquaponic yield farming: https://bankless.substack.com/p/aquaponic-yield-farming
Learn more about your ad choices. Visit megaphone.fm/adchoices
the goals of protocols offering liquidity mining
the goals of users yield farming right now
whether users of Compound will have much awareness of COMP in the future
how Compound is trying to dampen inorganic activity and properly align incentives
how incentives in one DeFi protocol can screw up another's such as changes in Compound's liquidity mining program causing Dai to lose its peg
whether the activity created by liquidity mining is sustainable and how
whether Compound is overvalued and how to determine valuations for DeFi tokens
the security risks that come with trying yield farming
how teams can keep their protocols safe given the composability of DeFi and the growing number of developments in the space
whether the yield farming craze will cause the price of ETH to rise and why the prevalence of stablecoins might prevent that
whether new DeFi tokens could push flagging layer 1s out of the top 10
what will happen if even more Bitcoin comes to DeFi
how the next big thing in DeFi might be trying to stack yield across protocols and eventually prime brokerage protocols
Thank you to our sponsor!
Crypto.com: https://www.crypto.com
Episode links:
Dan Elitzer: https://twitter.com/delitzer
IDEO CoLab Ventures: https://www.ideocolab.com/ventures/
Will Price: https://twitter.com/will__price
Flipside Crypto: https://flipsidecrypto.com
Total value locked in Compound: https://defipulse.com/compound
What liquidity bootstrapping pools are: https://medium.com/balancer-protocol/building-liquidity-into-token-distribution-a49d4286e0d4
Dan on earning more from borrowing USDT than lending it on Compound: https://twitter.com/delitzer/status/1272642107128164354
Tony Sheng on how yield farming works and how much you can earn from it: https://twitter.com/tonysheng/status/1274393189231689728
And his followup on the risks of yield farming: https://twitter.com/tonysheng/status/1274780457729617920
The purpose of COMP for governance: https://medium.com/compound-finance/compound-community-ownership-ee0ed1252cc3
https://medium.com/compound-finance/expanding-compound-governance-ce13fcd4fe36
Risks of so much BAT being held in Compound: https://twitter.com/spencernoon/status/1276897377446776832?s=20
https://twitter.com/defiprime/status/1277026665952980992?s=20
https://twitter.com/devops199fan/status/1274732220192829441?s=20
Cyrus of MakerDAO concerned about the risks COMP poses to the Dai peg: https://forum.makerdao.com/t/upcoming-comp-farming-change-could-impact-the-dai-peg/2965
Dan Guido and Taylor Monahan on Unchained discussing DeFi security: https://unchainedpodcast.com/defi-security-with-so-many-hacks-will-it-ever-be-safe/
Twitter discussion on whether ETH price will rise due to yield farming: https://twitter.com/RyanSAdams/status/1274781676875452421
What will happen to other Layer 1s? https://twitter.com/Shaughnessy119/status/1274376237239189504?s=20
Aquaponic yield farming: https://bankless.substack.com/p/aquaponic-yield-farming
Learn more about your ad choices. Visit megaphone.fm/adchoices
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