Are there any Yield Farms (YFs) that do not use leverage or is leverage worked into virtually every YF strategy?
I'm concerned with the use of borrowing behind the scenes of Yield Farms (YFs) in order to achieve astronomical gains, known as leverage. Although, this may work well as a short-term investment, in the long-term, if the prices decline for a sustained period of time there seems to be a high risk of liquidation of the principal comprising the collateral for the YF.
In addition to leverage, other strategies implemented in YFs are lending and crop rotation.
- Earn APY from collateralized loans
- Crop rotation
- Switch between different protocols
- Liquidity pools and mining
- Governance staking
- Represent voting participation in a liquidity pool