As most of the people here, you want to earn passive income. Therefore, you are looking for DeFi projects with attractive yield rewards i.e. interest APY. There are many options to make DeFi and several blockchains: Ethereum, BINANCE Smart Chain, Polygon, Fantom, Harmony One... and Cardano soon. On each of these blockchains, there are lots of platforms proposing DeFi: Uniswap, Sushiswap, Quickswap, Spookyswap, Viperswap... and Ergo soon?
Therefore, you are wondering which blockchain and platform to use in order to maximize your yield rewards without taking too much risk. Before going into the details of each blockchain and DeFi platform, the rule #1 is: Beware of the rug pull!
Some of you may wonder: what is a rug pull? Please see below a definition on Coinmarketcap:
A rug pull is a malicious maneuver in the cryptocurrency industry where crypto developers abandon a project and run away with investors' funds.
Concretely, that's a few lines of code in the smart contract of a DeFi platform allowing the founders to run away with your money.
Let's take a concrete example. One of the recent platforms promising very attractive rewards is tetu.io. If you go on their website, you will see a nice team, and beautiful words about their concept. Furthermore, it is also written: "Tetu was audited by DeFiYield". So you may think: no problem, right?
Well, the fact that a DeFi platform was audited is not sufficient to give them your coins. Let's have a look at the DeFiYield report since they were audited:
You are not dreaming... It is written: "A privileged EOA can call a function that allows to withdraw all funds located in the contract to a needed address".
Do you still trust them?...
The same rule applies to all the DeFi platforms, AMM (Automated Market Makers) and DEX (Decentralized EXchange). Ideally, read the code yourself if you can. Otherwise, please read at least the audit reports. Being audited is good, but it does not mean anything. The report will tell you more.
As usual, it is not a financial advice. Please do your own research and click here for more recommandations.
