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The risky nature of the broader cryptocurrency market immediately impacts the value of underlying assets and the sustainability of yields. The tax implications of yield farming earnings, subject to each income and capital positive aspects taxes, add one other layer of complexity requiring diligent record-keeping. The pooling of capital by yield aggregators also highlights a robust network impact throughout the DeFi ecosystem.

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Lido (ldo) – Liquid Staking Protocol With Steth Tokens & Defi Integration

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This structured, analytical strategy now underpins my work in crypto, permitting me to bring clarity and credibility to initiatives in an area typically criticized for hype and jargon. Realistically, 10-30% on established protocols, perhaps 50% when you take extra risk. Smart contracts get exploited frequently and you can lose every thing in a single day. Even Euler Finance misplaced $197 million regardless of audits, so only farm with cash you presumably can afford to lose.

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