1.3. The gap between users demand and the market
Interest rates for depositing at CeFi crypto platforms range from 0.1% to 12%, typically somewhere in the order of 5% to 8%.
Meanwhile, the interest rate for yield farming in the DeFi world can be significantly higher, ranging from 15% to 1000%, or even more. Typical DeFi farming interest rates are between 20% and 99%. The following graphic shows the interest rate of yield farming on PancakeSwap at the end of March 2021.
Figure 01. The farming interest rate (APY) at Pancake Swap at March 2021 of some crypto-pairs , Source :
In order to be able to get the potentially much greater profit from yield farming on DeFi, while at the same time minimizing risk, the user needs a lot of experience and many complicated operations. By merging specific aspects of CeFi (such as ease of use functionalities) into DeFi, Moonfarm will offer consumers a "best of both worlds" scenario.
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