Excellent introduction! My own experience with DeFi is a few months in the Yearn USDT vault. (It seemed like a low-risk way to learn the mechanics.) The quoted APYs vary quite a bit from week to week. If I calculate the APY myself over the whole time, it’s about 9% annualized. That’s not bad for a stablecoin, but after gas fees for entry and exit, it’s hardly worth the bother for the amount I was willing to experiment with.
I find that I like strategies with a lot of transactions, like dollar-cost averaging or asset allocation with rebalancing. For these, transaction costs are much lower on a centralized exchange.
If I find something that I want to buy in one lump and hold for a few months, and it’s not available on my exchange, I’d certainly consider buying it on Uniswap.
Excellent introduction! My own experience with DeFi is a few months in the Yearn USDT vault. (It seemed like a low-risk way to learn the mechanics.) The quoted APYs vary quite a bit from week to week. If I calculate the APY myself over the whole time, it’s about 9% annualized. That’s not bad for a stablecoin, but after gas fees for entry and exit, it’s hardly worth the bother for the amount I was willing to experiment with.
I find that I like strategies with a lot of transactions, like dollar-cost averaging or asset allocation with rebalancing. For these, transaction costs are much lower on a centralized exchange.
If I find something that I want to buy in one lump and hold for a few months, and it’s not available on my exchange, I’d certainly consider buying it on Uniswap.