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DeFi Craze has taken over in the past few months and has emerged as a rock-solid concept that people are vouching for with their funds on. But according to a recent survey done by CoinGecko, it was surprising to note that just 23% of those who took part in the survey actively did some form of yield farming. To add more layers of surprises it also came out that many farmers did not even know how to read smart contracts and all that they knew about was the high Return on Investment they were getting.
The popularity of the DeFi and boom in its application could partly be attributed to the growth in yield farming. CoinGecko as we know is a popular and much revered data aggregator who has conducted this survey to assess what people think about it and how people perceive the very notion of digital assets. Now the survey was intended to catch very basic elements and the data aggregator firm set off with simple discussion points leading to bigger observations.
The given chart below clearly illustrates that almost all respondents when asked about the most popular cryptos – they name Bitcoin and Ethereum. 94% of them had purchased at least one out of the two in question. 81% of the respondents have heard about liquidity mining or yield farming but not necessarily the intricate details of it.
Source: CoinGecko
Out of a total of 1,347 respondents, enough to represent the population, only 23% of them said that they had participated in the yield farming procedures in the last 2 months. This outcome implies that yield farming sure has picked up pace but it still is not everyone’s cup of tea. It added that yield farming can be considered to be a niche segment and this thought could be one of the barriers to its entry. Another interesting point that came from the survey was that 90% of the yield farmers were male while 6% were females. The remaining 4% did not want to comment. There could be many reasons attributed to this, hence pinpointing one could be difficult in such a case.
The last few months have been good for DeFi but it sure has risks in terms of hack attacks, protocol failure or any errors it has seen all. 79% of the respondents have claimed that they know about the associated risks to a great extent. But 40% of the yield farmers have no inkling about how a smart contract is read. Most surprisingly a sizable 33% still are not even close to being aware about impermanent loss.
CoinGecko revealed that the farmers only talked about their high-risk-high-return scenario. They have no idea about ROI calculation. But one thing that came out shining was that about 93% of the respondents said that they earned huge returns of at least 500% from yield farming. Considering the influx of new pools provide insane APY of over 1000% this can be true.