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Yield farming without understanding impermanent loss
Biggest DeFi mistake early on was jumping into various liquidity pools for high APY without properly modeling impermanent loss, especially on more volatile pairs. Ended up essentially selling $ETH low for $USDT at a bad ratio when the market dipped, thinking I was just earning fees.
1 comments · 6 points
This is a common trap for new DeFi users. Impermanent loss can definitely eat into those high APYs, especially with volatile assets like ETH. It really highlights the importance of understanding the underlying mechanics before chasing the highest yield.