Is all of defi only short-term investing?

I’ve been dabbling in defi for a couple months now.

After getting used to providing liquidity for pairs like stabe-stable, stable-eth, and eth-matic I have a couple questions.

Are the real profits in defi made from being early in ponzi farms? Is that really the only true way to get rich in defi?

Or will trusted, blue chip dexs with safe pairs such as stabe-stable, stable-eth prove to be extremely profitable as well?

Is defi truly a long term game because you have to be invested for a long long time to see good returns?

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40 thoughts on “Is all of defi only short-term investing?”

  1. Yes.. and No. The “safe” side of defi let’s you earn anywhere between 10-30% yearly return. Now is that going to make you rich overnight? No, but if you det aside and invest or DCA 1000$/month for instance it almost certainly will make you rich in the long run. Now.. there are more riskier sides to def and the ponzinomics of new projects is one of them. I for one is trading a lot of tokens related to the latest passive income node projects. Now some of these might succeed and make you rich if you make nodes, most of these will likely wither out over time as they will struggle to get out of the ponzinomic phase, every once in a while these projects can also rug, so DYOR and don’t put all eggs in one basket. I have been making over 300% per month last 3 months day trading these tokens. Not making nodes, just buying low and selling high. This is my opinion a gold strategy because of the token being used to buy nodes means there is always gonna be buy pressure if price drops extremely low. These projects also have discords with upcoming news and changes and trading the news on these have been very lucrative for me. Is this risky? Absolutely, but as always DYOR and select your strategy based in your risk tolerance.

  2. Usually every project, not only crypto ones incentivize clients in early stage of activity. I wouldn’t say it’s short-term, just later a lot of these projects will provide less gains.

  3. I think a lot of projects are just a money grab for devs, and those who joined early and cached out before they tanked. The only exception I found seems to be OsmosisLab. They are a full blown L1 chain so they can do so much more overtime.

  4. Well, DeFi in general gives power to the investors, so that should be a long-term investment for me. As for DeFi projects, I might go into DEX platforms at stake tokens for stablecoin gains or just get into new real estate platforms like Bricktrade and start earning from fractionalized properties.

  5. DeFi is not a get-rich-quick scheme. There is no one right way to DeFi, it should be used and catered to YOUR investment style and risk tolerance. Want to gamble on crazy high APY farms? You can do that. Or you can use it to compound yield on blue chip assets that you are holding long term. Or you can do a bit of both.

    Be patient, focus on learning different strategies and tools that are available to you. Focus on researching and building conviction on certain assets and ecosystems. There is a lot more to defi than just farms.

  6. There is no world in which sustained, long term real interest rates of 10%+ are achievable. If there were, ‘smart money’ would be flocking to these projects. Any project offering “80% APY” or equally ridiculous claims either 1) won’t be for long 2) is obfuscating “real” returns vs. “nominal” returns or 3) is an outright scam.

  7. There is nothing ponzi about a liquidity pool. People need to trade pairs, in order to do that they need people that own the pairs to provide liquidity for the exchange. It is bread and butter economics. Obviously, less people in the pool and less liquidity, higher the potential return for those that provide liquidity, conversely, eventually once the pool gets busier and the liquidity more plentiful, the returns will go down dramatically in that particular pool.

  8. Doesn’t mean necessary it’s a short term investment. For me, i always try to stay with token and hold while i get some passive income as btc or eth which is case with Refi i started to invest lately. So it’s always was and will be a long term investing when it comes to any crypto, patience makes profit.

  9. Short-term investing isn’t really investing it’s more like trading. However, long-term plays including stablecoins or finding the proper DAO are absolutely viable options. Whether it’s a liquidity risk, a technical risk, or a pricing risk, it’s always a matter of taking a risk at the correct moment. There are multiple 100-200 percent APYs available in the marketplace, with claimed returns as high as 40 million percent in certain cases. I’ve heard about a new fascinating Kyrios finance protocol, but I’ve been farming MidasDao and Pickle recently, which are both strong Lp strategies.

  10. investing in $GRO Eliminated a lot of the farming day to day chores. Just keep earning each day and compounding a project that I don’t mind to hodl.
    MOR is possibly the best stablecoin, only a matter of time before it gets the recognition that it deserves for having the highest yields returns.
    Some pools pay you to borrow!

  11. Short term investing is not investing thats just trading. But there are definitely long term plays involving stablecoin or finding the right DAO. And if you don’t mind me shilling, I highly recommend FantOHM.

  12. MOR by Growth DeFi is a blue chip long term driven DeFi project, It’s live on AVAX and BSC and launching on FTM today in ~2 Hours. It holds the lowest fee’s anywhere (0% deposit/withdrawal), You can stake it’s over collateralized stablecoin MOR which is an audited fork of Maker DAO’s DAI with the ability to use yielding assets as collateral. MOR can be staked for higher yields anywhere else for a stablecoin which is paid out via it’s 570k capped supply Governance token GRO with no time lock or fee’s to stake, I think that alone is a huge reason alone to look into it at least. Can borrow against yielding collateral IE Interest bearing Single Asset Staked Tokens or Yield Farming LP’s with 0% interest the only fee’s are a 20% performance fee for the convenience of autonomous compounding the yield of those LP’s and no further gas costs. Audited by Certik and ConsenSys Dilligence. Hands down the most ambitious and cutting edge project in the industry and no doubt will be a name you hear a lot more in the coming months with more revolutionary products to come. It’s extremely undervalued already has a lot of solid partners like ApeSwap,Olympus,Trader Joe, Chain Link, Crypto,com and just Today announced it’s partnered with Liquid Driver and will be releasing the first derivative (called cLQDR) which is launching possibly with Today’s FTM launch. It’s very logically built so may take a bit to wrap your head around but is really worth the dive I guarantee you’ll learn a ton if you ask questions in their telegram.

  13. Not all of it but I will have to say that getting in projects very early has been giving the most returns, but really too crazy to be sustainable. I like to space out my assets and put some in bluechip safe pairs and some in newer, adventurous projects like UnidoEP.

  14. altafin offers a 12% annual APR bond-like contract that pays a bonus in altafin token at contract close. You can open a 3 year contract if you want, pretty cool.

  15. I think it also drastically matters on when you enter the project.

    I got into CRONA towards the very beginning. Around .90 cents and now it hangs around .15.

    On that one, if I waited a month for it to fall and then hopped in when it is kinda stable or Atleast not in fear of a .80 decline. Then I think long term investing works out better for a later

    Most of these farm tokens, get a huge sell off and the price drops crazy. But I’ve been chilling in a couple others that have already been hit by the massive sell off, and I’m only down like 20-30$. But it’s the market right now. So I feel like I’m in a safer bet.

    And plenty of these farm coins have a shit ton of pools staying well above 100% interest. With some crazy coins being up to 1,000+’s of percents and lowering down to like 300-500% which at the end of the day is way better than any bank I can find.

  16. In the crypto space, nothing screams passive income more than DeFi. The world is structured in a way that you can’t have your hand in too many things at the same time and achieve real time efficiency. Having an option where you can stake and earn makes life more easier.

    The likes of DAFI and YLD are my top picks for now. The reaoson is simple, I am more interested in projects with juicy APY.

    For example, DAFI’s super staking feature lets me earn up to 220% APY and that is great way to earn passively in the crypto space.

  17. I think like anything there are many avenues to make yield.

    Getting into ponzi like projects early can be profitable, but with that you take on a lot of risk in terms of rugging and token prices plummeting.

    Defi also offers plenty of lower yield on stable coins and blue chip coins. although 20% might not seem like alot compared to whats out there, it is much safer. Plus, in the “real world” 20% is astronomically high for interest.

  18. YES.

    Only true long term play that is guaranteed to dominate is ETH IMO due to decentralization and potential cash flow of ETH2.0 staking once mining is dead.

    At least, assuming crypto market will generally trend up with time.

    Not to say that long term cases aren’t there, but MOST crypto assets are like 1-2yrs old at best.

  19. Early on ponzi’s take gains fast. There is zero blue chips all defi is trash and will go to zero. Stable Lp’s are bullshit they cost money to make and break and the apy will drop to 6% in a week don’t even waste your time. Stick to single sided. Never lock coins for boosts on anything made that mistake. Nothing is long term investment in crypto.

  20. Nope, there are a lot of long term plays in Defi especially with staking. I’m staking on Hyperdex and that isn’t short term for me at all

  21. Stop, few month is short-term. They’ll get more rare over years. Due to capped supplies. So many good projects (with usecase) are highly undervalued. Newer ones often overvalued.

    For example:
    On AVAX you made easy a 100% APY few month ago. Now you must be lucky to get a solid 50%… prices are down because people made a lot of these tokens and sold them to the market. If you’re in projects supporting what you need then there is no issue on the long term.

    It’s all “Ponzi”…

  22. TM stable coin has 18% APY. Stake TEM on Receive SWORD rebases. Wrap your SWORD. Receive TM stablecoin payments on top of rebases. You get a 2x mechanism every 5 days on your TM payments by not unstaking your wSWORD. You’re welcome y’all .

  23. Defi is not a quick money making system. You have to take your time while investing. Be patient, focus on different strategies. Currently researching on a Stakenet and would take my time with it

  24. Hex is the first finished product on the Blockchain. It’s a certificate of deposit. Just like with normal banks the longer you lock the more APY you get.
    At the moment $ 9.37B is locked for an average length of 6.28 years. So that’s not really short term.
    You can choose how long you want from 1 till 5555days

  25. I’m neck deep in HyperdexFinance and I’m loving it so far. I don’t plan on having short term business with them and they don’t plan on stopping anytime soon. You should try them out too and know what it feels like to making good profits from long-term investment

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  27. I’d say the total opposite in that it’s mostly about long-term investing. The only get rich quick stuff is chasing degen yield farms and their tokens but imo the power of it is:

    * borrowing against your assets at really low rates and no minimum amounts. You could borrow against your tokens and take some bets. Those may pay off but that’s more about *your bets* paying off than defi making you rich
    * you can get yield on liquidity pairs. The safer the token, the less the yield tends to be but its yield none the less. Getting like 8% on a pair with two tokens that you like isn’t bad. That probably won’t get you “rich” though.

    To me it’s most about long term plays and stacking your APYs and getting actual utility from the protocols as opposed to some insane price action.

  28. How about you go check on RAMP DeFi, my friend. It’s a multi-chain lending platform that gives users the highest deposit yields and lowest borrowing fees on collateral assets within BSC and Polygon. Also, with RAMP, you can borrow rUSD (a stablecoin) to use it for lending and staking and explore new token opportunities.

    Don’t miss out [](

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