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1.2. The gap between users demand and the market
The desire to have higher profits with Defi yield farming
Interest rates for depositing at CEFI crypto platforms range from 0.1% to 12%. It depends on the type of crypto, the moment, the level of the user, the amount of crypto that the user deposited ... and so on. But common CEFI crypto lending interest rates are between 5% and 8%.
Meanwhile, the interest rate yield farming can be much higher in the DEFI world. It ranges from 15% to 1000%. It depends on the crypto-pairs used, the moment to farm, farmers' experience...so on. But common DEFI yield farming interest rates are between 20% and 99%. The following picture shows the interest rate of yield farming in Pancake Swap at the end of March 2021.
Figure 01. The farming interest rate (APY) at Pancake Swap at March 2020 of some crypto-pairs , Source : https://pancakeswap.finance/farms
But to be able to get the much higher profit from the DEFI yield farming with minimal risk, the user needs a lot of experience and many complicated operations. That can see how great a demand is from the user to get the higher profit from DEFI yield farming with simple operations like in CEFI platforms.
Last modified 8mo ago
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