288.3K% APY on Autofarm... Should you trust?

288.3K% APY on Autofarm... Should you trust?

By Bfab | Good vibes | 17 Feb 2021


If you have not tested the DeFi protocols on Binance Smart Chain yet, please have a look, you will be impressed by the APYs and the low gas fees. The TVL of those protocols like Pancakeswap has significantly increased, which is quite logical since the gas fees are much lower than on Ethereum.

You may still think that it is not an option for you since it is not really DeFi but CeDeFi - which is an oxymoron by the way, and I agree with that. However, the APYs are so high that the FOMO effect will urge you to test it. So, ok, but what about security? Let's have a look at the audits done:

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This table allows to remove two protocols from the shortlist: PancakeBunny and Dego. I had this bad feeling already before these audits, but that was only my perception. Now it is confirmed. What about the other ones? Is one audit enough to ensure everything will be fine? No. Let's dig further:

  • If you read the press release from ACryptoS on Dec. 19, 2020, you will find these comments: "Beefy’s Venus implementation is a relatively poorer one. We can see this before reviewing their source…". Frankly speaking, that's a no-go for me, for both of them: the critic and the criticized
  • FryWorld and Traphouse do not give me a good impression either - for instance the websites look unprofessional - no-go for me
  • Autofarm is not in the list above, whereas they were audited by Vidar, who has a good reputation - I keep them in my shortlist
  • Bakeryswap is not in the list above either, whereas they were audited by Certik - like many other protocol - in the shortlist too
  • Panckeswap seems to be the most reliable one, since it has been working with (almost) no issue for months - in the shorlist too

You can also check if CZ follows the app on Twitter... it's a kind of approval. However, maybe he does not like Autofarm only because of the intercompatibility with Huobi - hence it is not exclusively Binance, which is a kind of casus belli.

In summary, my recommendation would be Pancakeswap + Bakeryswap + Autofarm. However, although the risk is low, it is still there... Therefore, I would not put all my eggs in the same basket. Do your own research and keep safe.

 

 

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