Delve: Cashing in or Losing Big on Cryptocurrency Yield Farms?
If something seems too good to be true, it probably is. Add cryptocurrency yield farms to that list. A complex investment strategy in decentralized finance markets, yield farming advertises eye-popping passively earned returns. While some investors boast impressive returns, for others the risks are unclear or even undisclosed before they invest, and the advertised returns never materialize.
Research by Desautels Professor Patrick Augustin investigates the risks to investors chasing high yields in decentralized finance markets, finding that the risks in yield farming are not transparent, farms that advertise the highest yields systematically underperform, and that most investors don鈥檛 stake claims on the blockchain so don鈥檛 see their risks pay off.
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Founded in 2019, Delve is the official thought leadership publication of 缅北强奸鈥檚 Desautels Faculty of Management. Under the direction of Professor Saku Mantere, inaugural Editor-in-Chief, Delve features the latest in management thinking that stretches perspectives, sparks new ideas, and brings clarity to decision-makers at all levels and across sectors.
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