In this review we explain our reservations towards the Yield Farming program lead by David Malka.
What is YieldFarming.com
YieldFarming is presented as an educational program that will teach you how to make huge returns on investments using your cryptocurrencies on decentralized finance (DeFi) platforms.
There is a 22 minute long promotional video that claims that you can make hundreds or even thousands of percent on your investments per year thanks to yield farming.
The program is lead by David Malka and the entire group allegedly includes billionaires, hedge funds, crypto exchanges and other wealthy entities.
The cost to join Yield Farming is pretty hefty. There is an interview that you have to go through to be accepted in the program and it seems that the initial fee is set up individually, but in average people are reporting that they are asked to pay 15,000 USD per 6 months just to be included in the YieldFarming.com group.
Then you also have to have a similar capital to invest in the actual farming, so it seems that the starting minimum is a total of 30,000 USD.
Is it worth it, is this program legit? Let’s try to answer these question in this review.
YieldFarming.com – what we don’t like
We did not pay the 15,000 USD to join the program, we just had a look at its presentation and we found several very problematic things that we are going to address in this review.
The way the entire program is promoted is in our opinion very irresponsible. Let’s address some of the claims made by Malka and his colleagues in the promotional video.
Yield farming is not a loophole
In the video they say that they found a loophole in the form of yield farming that can make you tons of money.
But yield farming is not a loophole, it is nothing new, it has been around for years. There are countless crypto platforms that will allow you to stake your cryptocurrencies, provide liquidity for decentralized exchanges and lend your tokens. All these activities are rewarded in cryptocurrencies.
This is very common, there is nothing secret about it, anyone can do it. However, it is extremely risky, which we are going to explain later on.
In the video you will also hear the claim that banks are using yield farming, but in reality they certainly don’t use those DeFi platforms with high yields.
Billionaires need your money
When we research investment opportunities, we always try to answer the question what motivates people who run them?
YieldFarming.com claims to have billionaires in its inner circle who are making billions in yield farming.
To answer the question why would they even share their extremely profitable business with outsiders, they say that they want fresh ideas that will help them make even more money.
But at the same time they say they are perfectly happy to accept people with zero experience in crypto trading and decentralized finance.
But what they certainly do want, is your money. As we mentioned earlier, the average fee just to join the group seems to be 15,000 USD, which is a lot of money. So they are billionaires but they need you to pay that much upfront.
And according to the discussion on Reddit, they put people under pressure to join and pay. Which seems weird, because they are billionaires, right?
So this whole concept seems strange to us. YieldFarming.com is supposedly making billions and is working with billionaires and wealthy companies, while they are willing to share their secrets with people with zero knowledge about crypto finance, but they will make you pay a lot of money for it.
While you should not forget the fact that the more people participate in yield farming, the lower the rewards. So if they share their secrets with you, and you do the same yield farming as they do, their rewards will go down.
High returns fairy tales
Now let’s address the main problem we see with YieldFarming.com, which is the way they present the return rates you supposedly can achieve. Because it is omitting certain very important fact related to risks.
Yield Farming says you can make hundreds or thousands of percent per year. They show you some calculations demonstrating how much more you will earn in yield farming in 5 years than with your money in a bank.
But they completely fail to explain the huge risks that are connected to yield farming. Let’s address the most important ones.
Making high APR but in crypto
YieldFarming shows you high APRs that you can achieve, like 500% in the example with the crypto token ADDY.
The problem is that in such cases the token loses so much value so quickly that even such a high APR won’t compensate to losses.
In the very example of ADDY that is shown in the YieldFarming.com video you would be losing terribly.
ADDY had a 500% per year ROI but the price of the token went 99% down in a year. So let’s say you bought 100 ADDY at 50 USD one year ago, so you paid 5000 USD.
The 500% APR would make grow your 100 ADDY to 500 ADDY in one year so you would have 5 times more ADDY tokens. However, the token price plummeted from 50 USD to 0.35 USD, so your 500 ADDY is now worth 175 USD.
In other words, one year ago you invested 5000 USD into ADDY and despite the 500% APR the value of your current ADDY holdings is 175 USD, so you lost 96.5% of your investment.
Does that sound like a good deal to you? Of Course not. And this what typically happens with token with APRs so high, their value goes down so quickly that your yields can’t compensate and you lose a lot of money.
Another example given by YieldFarming.com in their video is OlympusDAO and their OHM token. But it really is the same story, as you can see in our picture below, the token just crashed and lost about 99% of its value.
So again, despite high initial APRs you would still be losing money if you held OHM.
And its the same story for the numerous forks of OlympusDAO like Wonderland, Sapratcus, OneDao Finance or Snowbank. And hundreds of other high yield tokens.
Not even stable coins are safe
Malka says in the YieldFarming video that even the worst crypto yield farming is better than holding cash, while he shows farming with stable coins and says that it is “extremely safe”.
Well, it is not. One of the farms he shows is with the stable coin UST. That stable coin is part of the Luna ecosystem that recently collapsed in a horrible way and lost billions of dollars to people.
UST was supposed to be always worth 1 USD, it was a stable coin, until it wasn’t. One day it lost its peg to USD and crashed to 0.05 USD. Now it is worth about 0.1 USD.
So much for the “extreme safety” of yield farming with stable coins according to Malka.
Platform malfunction, hacks and impermanent loss
Now let’s have a look at some other risks connected to yield farming. When you use DeFI platforms, in most cases you have to deposit your crypto tokens to their smart contracts, which means that you lose control over them.
And some of these platforms go down because of errors in their code. Which can result in a total loss of your crypto tokens.
Different errors in the code can open the doors to hackers that will steal tokens from DeFi platforms. That is unfortunately a very common thing, hacks of DeFi platforms occur regularly.
As if it was not enough of risks, not an insignificant percentage of DeFI platforms are outright scams. Their owners will offer great returns on investments just to get you tokens and run away with them. The so called rug pulls also very common in this industry.
Last but not least, there is also a thing called impermanent loss, which concerns you when you put your crypto tokens in liquidity pools that earn you money on swap fees. Simply put, if the price of one of the tokens changes significantly, you will either lose more or earn less than if you held the token outside the pool.
And we could talk about other DeFi risks, like collateral liquidation in borrowing tokens when prices move too much, but you get the picture, this really is not a walk in the park.
As you can see, there are many very significant risks connected to yield farming that are completely outside your control. You can never know if a platform can get hacked or if the owners have bad intentions.
Terms and Conditions – always worth reading
Finally, let’s point our readers to YieldFarming.com Terms and Conditions. Because in their video you hear all the talk about billionaires, huge returns, fancy villas and private jets, but the Terms and Conditions tell a slightly different story.
As you can see in our picture, they say that there are no guarantees, that your results basically depend on you, that David Malka does not even trade everything that he teaches, that the strategies he teaches might not even be profitable, that you could lose everything.
Always read the terms and conditions.
YieldFarming.com review – Conclusion
David Malka and his Yield Farming put up a video presentation that tells you that you could be earning hundreds and thousands of percent on your investments thanks to crypto yield farming.
However, they don’t explain the huge risks connected to yield farming as we explained them in this review. Time has shown that not even stable coins are safe.
Time has also proved that yield farming with the ADDY and OHM tokens suggested by Malka in his video would lose you money despite their very high APRs.
Remember, YieldFarming.com makes five years calculations about how you will become rich thanks to yield farming and compounding interests. Yet the tokens they show crashed within a few months.
So what is left? The only thing they can do is to try and jump between different high APR DeFi platforms before they crash or before the tokens crash. Which is extremely risky, it is like running through a mine field. If you do it long enough, you are almost certain to make a bad move that will lose you everything.
YieldFarming.com say that they find the highest paying and lowest risk opportunities in yield farming. But no such thing exists. The higher the payout, the higher the risks, this is a rule, this is how it works in reality.
And when you go for hundreds or thousands of percent per year, you can be be absolutely sure that the risks are extremely high and that sooner or later you will get burned.
And this why we don’t like YieldFarming.com, they try to make it look like that with their secrets you will be easily making hundreds or thousands of percent per year while they don’t say that such APRs are connected to extreme risks that are unsustainable in the long term.
And they ask you to pay a high price just to get into this very risky game.