Market Vector | MVIS OneHundred – Decentralized Finance Yield Farming: Following in the Footsteps of Greedy Banksters?

July 2020
By Timotej Bodlaj, Portfolio Manager, Solidum Capital

Decentralized finance (DeFI) exploded in June as the compound token gained more than 500% in just three days (and then lost over 55% over the next two weeks), followed by the balancer token’s surge of more than 230% % in less than a day (which then lost almost 60% over the next two weeks as well).

A month ago almost nobody knew about yield farming*, but today it is the hottest topic in crypto. New yield farming opportunities are emerging almost daily, and even some existing crypto projects are joining the party. The following question comes to mind:

Are we really building a new, decentralized currency system that will eliminate the greedy banksters, or are we just following in their footsteps?

* The new term in crypto is “yield farming”, an acronym for clever strategies that temporarily make crypto available on platforms to generate a high return.
.

MVIS CryptoCompare Digital Assets 25 Index
30.06.19-30.06.20

Source: MV Index Solution. Data status 06/30/2020 About the author:

Timotej Bodlaj is a portfolio manager at Solidum Capital (www.solidum.capital) and a member of the Investment Committee. He has an extensive technological background in blockchain and finance. He holds a Masters degree from Rome Business School and an Oxford Blockchain Strategy Certificate from Saïd Business School. In his spare time, he enjoys outdoor sports such as running and cycling.

The article and link above represent the opinion of the author and do not necessarily reflect the opinion of MV Index Solutions or its affiliates.

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers