Staking

In the past yield farming used to pay much higher yields. It was very profitable, but drove a lot of imitators who dumped a large number of tokens into the pools and eventually raised the fees so high that it made less sense for new yield farmers to try it out, creating a downwards spiral.

​

In 2022, the yield will be much lower. There are several causes for this, but the main reason is that yield farming has become far more competitive in recent years.

​

Cold staking depends on how much the particular currency is transacted with. This in theory should give better opportunity, as trading needs transactions too and at the same time cold staking never paid as much as DeFi staking - hence there are not so many speculators.