In crypto assets, yield farming is the act of taking stablecoin and depositing them with different staking and DeFi schemes with varying degrees of risk-yield promises in the hopes that diversification across different varieties of Ponzi schemes will remove risk from an overall portfolio.
See also counterparty risk, Ponzi scheme and shadow banking.
- Allen, Hilary J. 2022. ‘DeFi: Shadow Banking 2.0?’ William & Mary Law Review, Forthcoming.
- Walch, Angela. 2019. ‘Deconstructing ‘Decentralization’: Exploring the Core Claim of Crypto Systems’. C. Brummer (Ed.), Crypto Assets: Legal and Monetary Perspectives, 1–36. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3326244.