«I think every DeFi protocol and each DeFi mission has a special stage of risk and a unique degree of reward,» stated Demirors. However, «it’s important to know the explanation the reward is excessive is as a result of the danger is increased. The explanation we see high yield is there is danger here.»

Section 2.6.25 is TON’s promise of decentralisation. It explicitly contrasts TON with Bitcoin and Ethereum, which run Proof-of-Work, https://gusevblog.ru/ which – aside from being a horrifying and reprehensible waste of energy and CO2 generator – has centralised as a result of economies of scale: the bigger you are, the more effectively you can mine Bitcoin or Ethereum. TON uses a nominator system:

Quite the opposite to its perks, all trades, together with yield farming, comes with a set of dangers. That’s particularly when smart contracts might be riddled with bugs. That was exactly the case with the token YAM in August 2020. There’s over $400 million locked into YAM on Uniswap, but there was a bug after it transpired. Subsequently, its worth crashed spectacularly from over $100 to across the $1 mark.