According to a new study by CoinGecko, 40% of DeFi pharming participants cannot independently assess the risks of smart contracts.
CoinGecko has released the results of a new survey on participation in yield farming. According to the results, out of 1,347 respondents surveyed in August, only 23% had participated in some form of “farming” in the last 30 days, but more than 80% knew the meaning of this term.
Responses to an online survey conducted through social networks also showed that 40% of participants in “profitable farming” cannot independently assess the risks of smart contracts and rely on auditors to identify them. But auditing is time-consuming and costly, so many projects abandon it altogether and increase the risk for DeFi farmers.
CoinGecko notes that “all ‘farmers’ should do their own research before participating in this strategy through pools, as there are many copied tokens that could potentially put them at greater risk, such as code vulnerabilities or fraud.”
The survey results show that few “farmers” are concerned about the significant risk they face, and even fewer are able to correctly identify it. 60% of the surveyed “farmers” continue to adhere to this strategy.
More than 90% of the respondents are men, and two thirds of the farmers are people aged 30 to 59. The survey results confirmed that “profitable farming” is to a large extent a niche activity that generates income for holders of specific knowledge both in the field of cryptocurrency transactions and financial settlements. More than 90% of respondents said they received a profitability of 500% or more from pharming.
CoinGecko concluded that while the high yields will gradually fade over time, some form of “profitable farming” will continue to exist as various projects continue to vie for the attention of cryptocurrency users.
Recall that the September 17 miners Ethereum earned on commissions 42,763 the ETH, equivalent to $ 16 million at current exchange rates, due to the increasing number of transactions on the background DeFi application boom and pharming strategy.