While yield farmers earn more than 500% profits, majority of them do not understand and read smart contracts. Interestingly, yield farmers are not capable of reading menace smart contracts that fortify DeFi sector.
Though, having no extensive knowledge of smart contracts has not stopped yield farmers to mint massive profits.
This news comes after the crypto market data provider published a new report after conducting a thorough survey. The survey suggests, out of 1,347 users of CoinGeko, almost 93% of them registered massive gains up to 500% in yield farming.
Out of 1,347 users, most of them are farming under $1,000, creating buzz around high gas fees in the crypto community. The third portion of users were ready to pay above $10 fee per single transaction.
The survey also hinted 314 users were active in the yield farming, however, 59% of users who took a chance to farm are still farming to date.
The CoinGeko survey also finds majority of yield farmers are headed towards becoming potential cryptocurrency investors. And 68% of users are willing to take risks despite the decadent nature of the DeFi sector, while 49% of responders were not willing to put their money in questionable protocols.
Surprisingly, just 40% of users were able to interpret and understand smart contracts supporting the protocol they tend to farm with. The survey took the DeFi community with surprise as it is being unveiled for the first time.
Yield farming and DeFi are new norms
Yield farming has become a new norm and yield farmers are spread globally. The significant amount of yield farmers are based in Europe with 31%, then 28% in Asia, North America with 18%, South America with 7%, Oceania with 4%, and Africa with 10%.
Almost 90% of farmers are male, out of which 34% are between 30 to 39 years old, and 25% are in their twenties. Ether holders amount to 82.7% while Bitcoin holders are 74% and 25% of farmers hold LINK.
Furthermore, Palkadot holders are 19.95%, LTC with 15.7%, and Tron with 17.3%.
Although, DeFi projects are distributing farming rewards in governance tokens, 11% of users desire to take part in governance. Primarily 54% of users store their holdings and 32% of farmers immediately seek to sell their holdings without worrying about the long-term.