And this is HN. Imagine how the rest of the world thinks.
Just consulted on a project that was able to raise $20m on their own through a yield farm and is using it to build out their product team and do tons of marketing.
Defi is the future, anyone who doesn’t see that is being willfully ignorant.
I don’t know what world you live in, but it’s like you guys believe there is some kind of ethics or moral high ground in sneering at something you barely understand.
Jeez. Over how long of a timeframe, and how much did they start farming with?
Its for a game with play-to-earn mechanics, still early phase but they just made a ton of big hires.
What is a yield farm and how is is structured?
It incentivizes investors to buy and hold instead attempting to trade the asset and create unwanted volatility.
It can also raise funds through a small fee structure that can be applied on deposit of non-native token pools.
So it must have extremely high interest rates? Which raises the question, who's borrowing all this and how's it collateralized?
If you want more mature examples of this structure in the wild I would start with pancakeswap ($4b market cap) and apeswap ($500m market cap).
People’s willingness to speak confidently from a position of ignorance always surprises me.