DeFi Yield Farming Math: Calculate Risks Before Chasing High Returns

Many cryptocurrency investors are blindly pursuing high DeFi yields without proper financial analysis. This approach often leads to significant losses in decentralized finance. Instead of emotional investing, traders should focus on mathematical calculations and risk assessment. Understanding APY, impermanent loss, and liquidity pool mechanics is crucial for sustainable DeFi participation. Major platforms like Uniswap and Compound offer various yield opportunities, but require careful evaluation of tokenomics and market conditions before committing funds.