What’s hot in crypto this week? 

Ethereum “whales.” Whale are users with a lot of money, and now many of them are turning to decentralized finance to make more. These users are undoubtedly driving the decentralized finance movement by depositing millions of dollars into decentralized liquidity pools to earn interest. 

Most are using yearn.finance, a set of automated money robots that do the work for them. All they have to do is deposit their money into a “vault,” and wait while these smart contracts move the assets between liquidity pools to generate the highest interest — like a very smart savings account. 

But the actual calculation of yield percentages are not transparent, which makes it hard to discern how much yield farmers are actually making. Remember, yield farming is the attempt to get crypto assets to produce the most returns possible, often by moving assets around and trying to spot the highest annual percentage yields. Stated annual percentage yields in this case have been said to exceed 1,000%. But that’s misleading, because they are usually based on expected return, given the rate is sustained for an entire year. But farming for any particular reward often only lasts a few days to weeks, with projects reducing the reward over time. 


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