The 5 Risks Of Yield Farming | Crypto Passive Income

The 5 Risks Of Yield Farming | Crypto Passive Income

welcome back to the cryp lives YouTube
channel let’s talk about the five main
risks we take when we yield farm when we
build a defi business I’m going to use
uh sui on turbos as an example but of
course any position you’re in or
anything you’re thinking about joining
please go through these five sort of
questions now I did post this in the uig
uh we’re going to have a bit of a
discussion about it tonight uh in all
week really on a few calls but I wanted
to bring the YouTube peeps I wanted to
bring you in on the conversation five
risks we face when Yi farming I’m going
to go through each one and then I’m
going to show you a real life example of
you know a DEX or an asset or a chart so
you can really understand what you’re
getting into a lot of people just get
into this thinking it’s all rainbow
Rosies and daisies or whatever the
saying is uh I think it’s got one of the
highest reward to risk ratios I think
the rewards are massive and the risk is
minimal if you do things right but
there’s still risks we take and we got
to be real about that so
first one smart contract vulnerabilities
I’d say that’s one of the biggest risks
we take um if there’s bugs or
vulnerabilities in the smart contracts
hacks exploits Etc remember there’s no
middleman and so it’s all smart contract
based so when you provide liquidity into
a DEX like Unis swap there’s no one
checking it’s a smart contract it’s code
and if there’s a bug in that code if
there’s an exploit and someone can hack
it
Etc uh we can we can lose our funds now
we stick to Major dexes dexes that have
been audited and tested and I mean even
some of the biggest ones do get hacked
but again it’s such a small portion of
their total tvl that their users
typically aren’t really affected by it
so this is why we like to stick to
trusted dexes and protocols that have
been tested audited and ideally been
around for a while so if we look at
turbos this is a risk that we would take
now turbos is a major decks one of the
biggest on
uh we we can think Unis swap we can
think Aerodrome these are all really big
dexes now there are newer dexes that
offer really insane yields at times but
you do take on risk because they’re not
tested and they haven’t really
been battle tested so we do look for
audits we like to look for much more
than one audit by reputable companies
and just been around for a while I
actually like when protocols have been
hacked and exploited in the past because
things are tightened up and the protocol
and the code itself is made better and
better and better and better so that is
a risk we take and we got to be aware of
that doesn’t matter what you’re doing in
defi you’re always taking a risk which
we want to minimize those risks by
finding trusted big platforms with a lot
of tvl that been around for a while that
are audited that are battle tested so
far so good let me know in the comments
if you want to add anything cuz I love
having these two-way conversations with
you please get engaged use the comments
two impermanent loss so when we are
providing liquidity to a pool the value
of your actual deposited assets uh that
value can change depending on what the
underlying assets are doing so if I look
at suie at one point this pool was worth
around
$110,000 I started with uh $4,000 in
this pool and it’s pretty much paid me
around $122,000 by now I’ve been in this
for quite a while uh the yields are a
little lower right now but they were 3 4
500% at times so I’ve more than applied
the rule of velocity of money pulled out
my initial and I’m riding on house money
that said depending on what the price of
sui is doing this value will move so as
you can see I got into this kind of
early February and I’ve been this is
kind of my range I’ve set I’ve been in
range for quite a while so at one point
it was worth a lot more at some points
it was worth a little less at some
points it was worth more at some points
it was worth less and when we saw that
big correction here were kind of buying
points for buying more sooie things came
back in range and I’m earning yet
again and
so as long as you’re holding assets that
you believe in longterm and you have a
bit of a strategy to things like in
extremely bullish times we may want to
be in correlated pairs but just remember
that sometimes you know here yeah you
could have said hey if you just held
sooie from here to here you would have
made more at that is true but if I would
have held SOI chances of me taking
profit somewhere around here were slim
to none because I expect suie to be
worth more and so if I’m earning half a
percent per day in suie here for months
at a time let’s say 100 days which is
what I’ve been doing when you earn that
sooie you can stack it for the bull run
now you can get the best of both worlds
you’re holding soie for when the price
skyrockets yeah you’re earning a daily
income and you’re buying the
dips but it is a risk we take we got to
be aware of that of course Market
volatility here uh da da da the price of
cryptocurrencies can be obviously
volatile as we can see here pretty
volatile one a139 to $2 to under a
dollar to back to
1.3 but again as long as you have a
strategy and you understand the assets
you’re investing in which I understand
suie very well I was not concerned when
markets were crashing I was just buying
up more and I keep burning sooie every
single day I was out of range for a
while here of course but I was just
buying
more let’s keep going our rug puls and
exit scams we’ve got to be aware of this
risk here uh there’s a risk of rug pulls
now that’s is why we do a lot of
fundamental and technical analysis this
is why we understand the team behind it
we want to know that there’s been Audits
and if we get into something that’s
higher risk which at times we do we want
to make sure it’s a very small
percentage of our Capital so if that
project or that coin or token rug pulls
maybe there’s a speculative play that
has a ton of potential but but it’s it’s
a little speculative and we don’t have
all the details we need on it but we
assess the rewards being higher than the
risks we’ll get into it but with a very
small percentage of our
portfolio you don’t want to have 50% of
your portfolio in some high-risk
potential rug pull scammy project please
stay away from that in fact just
completely stay away until you build a
sizable portfolio and you want to play
with some of
it and fact so again it would be very
important to understand turbos finance
suie and understand what’s behind it
who’s behind it make sure there’s Audits
and really just understand uh the scope
of the project and everything that’s
involved because you do not want to get
into some small project that’s offering
you some returns and it turned out to be
a rug pole and you lose 100% of your
Capital this is why we diversify
which is why we love Unis swap or any of
the bigger major dexes like you’re
pretty safe on those but that said you
could be on Unis swap yet invested into
a questionable coin or token and that
coin or token could rug pull and you
still lose your liquidity so you got to
be really aware of that and finally five
regulatory risks uh we’re always keeping
our eyes and ears on what’s happening on
that side of things and the
future long-term future I think is
really bright short-term future is
unknown and with unknown comes
volatility
but I believe in it long term I’m not
too worried about it shortterm but of
course we’re always I think the
SEC I think a bunch of people just
resigned because they found out that
they were misusing their powers when it
came to like regulating crypto and they
were making money on the side like it’s
chaos especially on the regulatory side
so we just have to be aware of that and
you got to ask yourself the question do
you see Defi and crypto being around
longterm if so we’re just gonna have to
stomach that if not then
well this probably isn’t the space for
you and that’s totally fine we just reap
the rewards by being early movers and
getting in early so I’m willing to take
that risk you’re going to have to answer
that for yourself if you are in the uig
hop on in and let’s H let’s start having
conversation with this if you’re not in
the uig then come join us we’ve got a
ton of value we deliver on a daily basis
from daily live calls to end of week
reports these end of week reports take
us over 20 hours collectively to do and
we cover again regulations things going
on in the markets ETFs what’s happening
with the big players what’s happening in
the markets overall and then we share
our three top positions uh and we do
research on projects couple projects
every single week so you basically get
20 30 40 hours of research condense down
into just a couple reads to save
yourself a ton of time and track down
some really really awesome opportunities
uh we do live calls we have education
courses programs technical analysis we
do a lot of course in our defi groups in
our Bull Run groups and of course we
have our Advanced groups um for those
who are a little more advanced
so that’s that what I’m going to do is
I’m going to leave my mug in the middle
and I will leave some more videos for
you to check out after you’ve liked and
subscribed to this channel uh check out
some more videos for your viewing
Pleasures hang out for an hour or two on
this YouTube channel at least learn some
stuff dive in deep and with that said
I’m G to get out of here appreciate you
peace

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Welcome to the CryptoLabs Passive Income YouTube channel where we tackle questions like:

Is crypto passive income really dead?
What is Yield Farming?
How can we profit from liquidity pools?
How can we become the bank?
How can we make a daily defi passive income?

Here’s how I’m approaching Defi and the Crypto Passive Income game… and here’s how we find new Defi passive income projects and opportunities! Welcome to True DeFi!

—–

Relevant Videos:

❤️‍🔥 How yield farming REALLY works: https://www.youtube.com/watch?v=qs3v84CBvi0

❤️‍🔥 $21,709 in 10 minutes: https://www.youtube.com/watch?v=d3SM8kBADU8

❤️‍🔥 How to make $100’s per day with Defi: https://www.youtube.com/watch?v=dnzuttWfMYw&t

❤️‍🔥 $293 / day Yield farming: https://www.youtube.com/watch?v=oejkNUlRIJQ&t

❤️‍🔥 Defi and Yield Farming AS A BUSINESS: https://www.youtube.com/watch?v=QIZoD1r7nN0&t

❤️‍🔥 Top 7 DeFi Yield Farming Dex’s | DeFi Passive Income: https://youtu.be/XJ4XcdRy9rU

❤️‍🔥 250% DeFi Returns! https://youtu.be/xzij_DcP5v4?si=6nMRlrNEYcN-fSYs

❤️‍🔥 Top 5 DeFi pools and chains: https://www.youtube.com/watch?v=eI_1MMPsVSc&t

❤️‍🔥 $582 Per Day Yield Farming | Crypto Passive Income: https://youtu.be/hdyqd6p-BxA

❤️‍🔥 $116,743 A Year DeFi Yield Farming | Crypto Passive Income: https://youtu.be/kUHltljzkts

❤️‍🔥 $320+ Per Day Yield Farming | Crypto Passive Income: https://youtu.be/wd6kKyOARJg

❤️‍🔥 $400 Per Day Yield Farming: https://www.youtube.com/watch?v=so-EASep1bo

❤️‍🔥 Our True Defi Strategy: https://youtu.be/b7Lf6aARK88

❤️‍🔥 Best True DeFi Advice: https://youtu.be/DcGIQ30o2KQ

❤️‍🔥 True DeFi Wisdom and Lessons: https://youtu.be/WoFJRz1OGTE

❤️‍🔥 Crypto Underdog Investor Group: https://www.youtube.com/watch?v=gJlTZsaz0tk&t

Chapters:
00:00:00 – Risks of Yield Farming and DeFi Businesses
00:01:00 – Smart Contract Vulnerabilities in DEXs
00:02:04 – Risk and Rewards of DeFi Yield Farming
00:03:06 – The Growth of the Sui Pool
00:04:15 – Being aware of market volatility
00:05:23 – Risks of Rug Pulls and Exit Scams
00:06:27 – Risks in Turbo Finance
00:07:27 – Volatility and Regulatory Chaos
00:08:26 – Join Our Exclusive Membership

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The content provided in this video, and on any related social media platforms or websites associated with this channel, is for entertainment and educational purposes only. The views, opinions, and information presented are solely those of the content creator and should not be considered professional financial advice. I am not a certified financial advisor or a licensed investment professional. The information provided here is my own opinion and should not be taken as personalized financial advice. Always conduct your own research and due diligence. By watching this content, you agree that I am not liable for any decisions you make based on the information provided.

This includes, but is not limited to, any losses or damages incurred as a result of investment or trading decisions influenced by the content on this channel. Investing and trading in cryptocurrencies involves significant risk. Markets for digital assets are volatile and unpredictable.

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