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In our last lesson, we talked about some of the top DeFi yield farming platforms like PancakeSwap.

Today, we’ll look at whether or not yield farming is even sustainable.

According to Decrypt, a number of Ethereum developers have said that certain yield farming projects won’t last and are “simply not sustainable.”

These projects — like DeFi meme tokens, whose prices depend on how humorous the public finds the memes behind them — often raise huge amounts of money in a short period of time, and are then forgotten.

Some of them have even been described as scams (especially the flash farming projects).

Other yield farming projects have involved experimental — and unaudited — code, which has led to unintended consequences.

For example, new protocol Yam, which was developed in only ten days, collected hundreds of millions of dollars in support, although it was unaudited.

Then, in just under 48 hours, their team discovered a bug in the code, which ultimately made governance impossible.

Prices plummeted and the YAM/vCRV Uniswap pool, which holds a little over a million dollars in liquidity, remains unstable.

The general consensus from experts seems to be “Invest at your own risk,” which is good advice for any investor.

Know what you’re getting into before you leap. Learn the lingo and know your markets so you don’t lose your shirt.

Steer clear of anything that sounds too good to be true (it probably is) and watch out for scammers who’ll grab your liquidity and run.

The more you know, the better your chances of making money at yield farming.

In our next lesson, we’ll look at the future of yield farming.

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