Revenue farming typically involves providing liquidity for DeFi protocols, lending or placing crypto assets in exchange for a reward.
However, when it comes to the crypto industry, you should consider all the nuances and do thorough research before investing your money in revenue farming.
Security- Look for DeFi projects whose smart contracts have undergone thorough code audits.
- Find out the total value locked (TVL) in the project (low TVL means lower returns).
Token- Find out what token the protocol uses as a reward for stakers and liquidity providers to account for its market opportunities.
Timeframe- Consider the period of time assets are frozen until the reward is received.
- Remember that newer DeFi protocols often offer higher rewards only to early users.
Team- Pay attention to the balance of the team, which should consist of a healthy mix of entrepreneurs, product managers, developers, software engineers, marketing specialists and financial experts.
