—— Quick guide for preventing losses as a novice (fact-based humorous version)
Brothers, I heard you want to be a 'faucet' in DeFi pools? You know, the kind where you lay back and collect money, just moving a finger for annualized returns of a few hundred? Wake up, my friend! In this day and age, do you think the liquid flowing in the pool is all honey? It could also be a mix of sickle oil! Let the experienced ones share some hardcore facts to teach you how to accurately avoid pitfalls in 'leek paradise'... oh no, accurately jump over them!
🔧 1. Platform background: Don't trust 'three-no products', just like you wouldn't believe the old man by the roadside selling you a 'family heirloom USB drive'.
• Fact: New platforms often shout 'annualized 800%', even more intense than pyramid schemes! But when you look closely, the founder's avatar looks like a stock photo, and the official domain name was just registered yesterday... Would you dare to invest your hard-earned money in this?
• Humorous advice: Choosing a platform is like blind dating—make sure to check the household registration! Look at who its parent (investment institution) is? What has its mother (team background) done? If even the LinkedIn page looks fake, better run! Established casinos like Binance and Uniswap at least issue an announcement before running away, leaving you a QR code for rights protection group. New platforms? They might not even finish writing the announcement before the pool is renamed 'Rug Pull Memorial Pool'.
💸 2. Source of returns: Beware of platforms that rely entirely on the 'printing press for annualized returns'!
• Fact: Some platforms give you returns that are not real trading fees, but their own printed 'platform tokens'! This token might be worth 1U today, but tomorrow it could drop to 0.0001U (and you can't even cash it out).
• Humorous advice: Ask clearly: Is the reward you give me the actual fee split from the pool? Or are you guys printing 'happy beans'? If the answer is the latter... my friend, that's not mining; that's 'helping the dealer print ghost money to burn for themselves later'. Refer to projects like Curve and Balancer, where the earnings are real trading fees, much better than 'aircoin printing contests'!
☠️ 3. Impermanent Loss (IL): This is not a loss; it’s a 'breakup fee' 😂
• Fact: IL (Impermanent Loss) is the pain of every LP (Liquidity Provider)! Simply put: if there are two tokens in a pool, one skyrockets while the other stagnates, the fees you earn might not cover the losses caused by the token price 'divorce'!
• Humorous advice: Choosing a pool is like choosing a partner: either both are 'stable' (like stablecoin pairs such as USDC/USDT, they won't quarrel much); or be prepared to be 'green'! If you insist on being the matchmaker for ETH and some 'meme token'... I suggest you first buy insurance or prepare a quick-acting heart pill 💊.
🚨 4. Safety factor: Don't put all your assets into a 'paper safe'.
• Fact: DeFi protocols getting hacked is like a water outage in a neighborhood—happens every month!
• Humorous advice: Ask yourself three soul-searching questions before investing:
– Where's the platform's audit report? (Don't believe 'my second uncle is a programmer, he has looked at the code')
– Have you been hacked before? (Those who have been hacked at least know how to patch holes; those who haven't might be new village bosses.)
– Is the fund pool large? (If the pool is too small, hackers might not bother— but the dealer might take action themselves.)
Look for the 'Audit By XXXX' (audit institution) label, like a swimming pool with a safety certificate, the drowning probability is a bit lower... but just a bit!
🎯 5. User reputation and TVL (Total Value Locked): The eyes of the public can occasionally be sharp 👀
• Fact: A pool with high TVL (Total Value Locked) is not necessarily safe (it might be manipulated by big players), but a pool with 0 TVL... that's truly dead!
• Humorous advice: Engage in communities! Are the old investors sharing their profits? Or are they posting about their rights protection T-shirts? If the screen is filled with 'give me back my hard-earned money' and 'scammers can't be XX', hurry up and run away! Also, projects like Maverick V2, which are chosen by big players like Lido and Ethena, have a much lower risk of pitfalls than those shoddy pools named 'God of Get-Rich-Quick'!
💎 Ultimate advice (take note!)
Providing liquidity is not the same as saving in a money market fund! It is a 'high risk, high reward' job in the crypto world. Here's a mantra for you:
> 'Small funds to test the waters, don't go all in;
> Choose stable CP (currency pairs), and avoid meme coins;
> The expected returns are discounted by 50%, so my mindset won't collapse!
If after reading all of the above you still feel pumped... then I suggest you practice on a demo account first, or just buy platform tokens to watch—after all, watching others lose money is also a form of profit (psychological balance version).
（Warm reminder: Humor is just for memorable impact; investing still requires caution. DYOR!）