Most of you have already invested coins in Automated Money Makers (AMMs) on the Binance Smart Chain (BSC): Pancakeswap, Autofarm, Goose...

As you may know, there are risks in the contracts and risks of rug pull. For those who don't know what it is, I have found this nice definition on reddit:

It's like being in a room and standing on a rug. You don't think anything of it and you think you're fine. Then, someone pulls the rug out from under you and suddenly you fall over and get hurt.

Which of the BSC's AMMs could make a rug pull? Nobody knows, it would be too easy, but you can suspect some clones of Pancakeswap... Be cautious.

On top of that, even without any contract risk or rug pull, any liquidity pool will expose you to the impermanent loss: for instance, if you put your BNB in a liquidity pool with an almost unknown token, e.g. "BUTTER" (fictive case) and if BUTTER value is divided by 10, you will lose a lot of BNB... even if the APY is 1 million %. Therefore, you'd better invest in liquidity pools combining tokens which have a real value - e.g. BTC, ETH, BNB rather than in shitcoins.

Everyone has his own farming strategy, new AMMs are popping up every week, it is crucial to diversify your positions in order to mitigate the risks. At the end of the day, what will increase your earnings is the value of the tokens in which you have invested. Therefore, do not forget to get back to centralized exchanges - e.g. Binance - to make some good old-fashioned trading and consolidate your assets by swapping back to top coins.

Please click on this link  to get more info on the audit results of BSC's AMMs.