CoinGecko survey: Most yield farmers increased investments by more than 500%.

Most users of DeFi protocols managed to multiply their capital by more than 500% through yield farming, though 40% do not know how to read smart-contract code. The results of a CoinGecko analytics survey, in which 1,347 people participated, show this.

1/ Hey Farmers! 👨‍🌾

Remember the Yield Farming survey we did two weeks? We managed to garner over 1347 responses! 🥳 And now, the fruit of your thoughts has finally been harvested!

Click here to learn more: https://t.co/xCv01MJYQY

Read on for a snippet! 😉 pic.twitter.com/barHYlqp65

— CoinGecko (@coingecko) September 21, 2020

Only 312 respondents (31%) were involved in yield farming. Among them, the vast majority are men over 30 years old.

The share of DeFi tokens in their portfolios remains low—less than 10%. The researchers say this points to a Farm & Dump strategy analogous to Pump & Dump—“grow and dump”—which points to the speculative nature of yield farming.

3/ Interestingly, the number of yield farming tokens held in the farmers’ wallet is less than 10%. This is suggesting that there may be a “farm and dump” happening in the market! 🤔 pic.twitter.com/BQ9pBEm4vJ

— CoinGecko (@coingecko) September 21, 2020

Starting capital for more than 100 yield farmers did not exceed $1,000. They were also willing to pay more than $10 per transaction on the Ethereum network.

According to the survey, 68% of yield farmers did not use leverage, fearing the already high risks or not knowing about such a possibility.

4/ It is harder for retail users (Capital<$1000) to profit as they are affected by the high gas fees when yield farming started. This is because farmers need to constantly move between pools. 🥺 pic.twitter.com/WpqxOz8l8W

— CoinGecko (@coingecko) September 21, 2020

Half of the 312 yield farmers said they did not wish to engage with DeFi protocols that had not undergone an audit.

40% do not know how to read smart-contract code, and 33% have not even heard of impermanent loss. Yet the yield-farming respondents largely believe they understand the risks associated with DeFi protocols.

5/ Shockingly, 40% of the farmers do not know how to read smart contracts and about 33% have not heard of impermanent loss! 😱 Does this mean….. they’re high risk-takers? pic.twitter.com/6Zzv8GLAA8

— CoinGecko (@coingecko) September 21, 2020

Earlier, Binance introduced the Launchpool platform for growing new assets and announced a $100 million allocation to support the DeFi ecosystem.

Shortly after, the fork of Uniswap for exchanging and yield farming DeFi tokens announced by the payments company Crypto.com.

Uniswap itself has released the governance token UNI, which was almost immediately listed on leading centralized exchanges.

The buzz around UNI became a catalyst for liquidity migration to Uniswap, which returned to first place in the DeFi Pulse ranking by the volume of assets locked.

Subscribe to ForkLog news on Facebook!