Yield Farming

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.

References

  1. Allen, Hilary J. 2022. ‘DeFi: Shadow Banking 2.0?’ William & Mary Law Review, Forthcoming.
  2. 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.
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