Krutika Adani
Yield farming can be lucrative, but it’s not without its risks.
Smart contracts are code-driven, meaning bugs or exploits can lead to significant losses. Always check for audits!
When providing liquidity, you might face impermanent loss due to price fluctuations of the assets in your pool. Be prepared for potential losses!
Cryptocurrency markets are notoriously volatile. Sudden price drops can affect your returns and investment value.
As regulations evolve, yield farming practices might face scrutiny. Changes in laws can impact your investment or even make it illegal.
Be cautious of projects with anonymous teams. Rug pulls can occur when developers abandon a project after collecting funds.