DeFi yield farming: following the footsteps of greedy banksters?

DeFI exploded in June as Compound token gained more than 500% in just three days (then lost over 55% in the next two weeks), followed by Balancer token gain of more than 230% in less than a day (which then also lost almost 60% in the next two weeks).

One month ago, almost nobody knew about yield farming, but today it is the hottest topic in crypto. New yield farming opportunities are emerging almost daily, and even some existing crypto projects are joining the party. The following question comes to our mind:

Are we really building the new, decentralized monetary system which will disintermediate the greedy banksters, or are we just following their footsteps?

Gregor, our CEO, is writing a blog where he will explain the basic and more advanced concepts of yield farming and the implications it might have for the crypto ecosystem. Follow Gregor on Medium and get notified when the blog is published.

Solidum Capital investment strategies performance

June 2020 (returns in USD):
-5.39% Solidum Actio Crypto Growth Strategy (monthly report)
-10.29% Solidum Cautus Crypto Hedge Strategy (monthly report)

The crypto market lost 7.0% in June. Solidum Actio slightly outperformed the market with a loss of 5.4%, while Solidum Cautus slightly underperformed it with a loss of 10.3%.

Market overview

After a very volatile price action in the first four months of 2020, the market was without a clear direction in the last two months. It gained 8.4% in May, then lost 7.0% in June, delivering a flat performance of 0.8% in the last two months.

Bitcoin is consolidating in the range between $8,900 and $9,900, with occasional fake breakouts on both sides, causing headaches to many traders. Once the actual breakout finally occurs, we can expect a decisive move in either direction.

Chart 1 - Crypto market performance (2020-06)

8 of the top 25 assets by market cap recorded a positive performance in June. The top three performers were Chain (+47%), VeChain (+41%), and Cardano (+12%). Bitcoin lost 3% and represented 64.8% of the total cryptocurrency market capitalization at the end of the month.

Chart 2 - Top 25 assets by market cap performance (2020-06)
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DISCLAIMER: This article is for informational and discussion purposes only and does not constitute a marketing message, an investment survey, an investment recommendation, or investment advice. The article was prepared exclusively for a better understanding of market dynamics.

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