Dmitry Mishunin, the founder and CEO of a DeFi security and analytics company HashEx
The cryptocurrency market is growing, and more decentralized protocols and tokens are coming on the scene every day. However, a sizable chunk of new ones turn out to be a waste of your time if you bother investing your money in them.
Unfortunately, most modern farms are created according to a pyramid scheme, reaching significant APR values due to the constant flow of new investors, and even knowing this, many people are ready to play this game for profit.
How to choose a farm for investment
First and foremost, pay attention to 2 proposed parameters – TVL (total value locked) and APR (annual percentage rate) of the farm.
The higher the TVL value, the better, so look for farms and pools with a TVL over $500,000-$1m. It is worth not paying attention to unrealistically profitable pools with APYs surpassing 600–1,000%. More realistic APYs in trustworthy pools would be …
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