One Button Capital AI vs Yield Farming. Full Breakdown.
Yield farming is an investment strategy with cryptocurrency in which you stake or lend crypto assets. The return is in the form of more cryptocurrency.
Liquidity providers stake or lock up crypto in a liquidity pool and receive an incentive in return. It became a popular DeFi feat in 2020 and hasn’t lost any attention in 2021. It is innovative, yet risky, and volatile.
OB Trader AI offers a return on your investment through 24/7 automated AI trading. We offer 8 different AIs that you can combine with a variety of strategies. With just pushing One Button, you are in the middle of the action and can start making returns.
How does OB Trader AI outperform yield farming?
OB Trader AI can outperform yield farming because of a variety of reasons. One is the simplicity in which you can set up our AI, with just One Button. First trades can be expected within a 24 to 72-hour period. With yield farming, you must enter a liquidity pool and go through a lot of steps before you can start earning yield. If you make a mistake in one of these steps, it is possible that you lose your complete investment.
Especially for a beginner in crypto, but also for experienced traders, an OB Trader AI bot is a lot easier to start with, compared to yield farming. Yield farming brings higher risks, and you are a lot more exposed to volatility, compared to our AI.
Furthermore, participating in yield farming brings a high risk of being pulled into a scam. If a yield farming project announces a 50% APY, there is always the possibility that the value of a coin or token can drop more than 50%, which will lead to some serious loss of investment.
What financial gain can you expect?
The financial gain you can expect with OB Trader AI are APYs per bot between 125% to 494%, pending on the chosen market and market conditions. Clipper has an APY of 256%, Solar of 302%, Astral v2 of 483%, and Performer of 308%
“Wondering how to get the appropriate APY for your investment you can use this parameter [((1 + R)¹²) — 1] x 100. If that's too technical for you, here’s a helpful article.”
The APY for yield farming varies between protocols. Some yield farming protocols make between 2.55% and 42.58%, other protocols boast 214% APY. There are some very high APYs around in yield farming, but that is almost the same as finding your moon bag.
With backtesting of the Performer AI, we saw some interesting results. One asset, EOS, only increased by +44.41%, but the ROI trading on the EOS:USDT market pair, was 158.55%.
The same AI also outperformed the market by 42.48% during a bearish trend. The AI generated +2.48% ROI over 99 days, rather than a 40.28% loss on Polkadot on the DOT:BUSD market around April-May 2021. A solid and steady performance. Another feature of Performer AI is its capability of predicting an ATH and turning this into profit.
Our Astral AI traded Monero between February 22, 2021, through June 18, 2021, in the XMR:USDT market. During this Monero bull run, XMS made a 71.36% profit.
Astra turned in a +204.18% ROI during the same period, outperforming XMR by +132.82% (almost 3-fold) over 121 days.
Horizon AI outperformed the market by +24.98% over 65 days in the ETH:USDT market between June and August 2021. He shows above-average confidence in making a series of profitable trades after analyzing the downtrend and uptrend. Proofing the Horizon AI as a good choice between bear and bull markets.
What are the pros and cons?
Pros of using OB Trader AI
- It makes investing simple. No need to study charts for hours, the OB Trading AI bot does this for you.
- Parameters are all set and ready to go. All it takes is choosing a Trading bot and a strategy.
- Maximizing profits. OB Trader AI bots are experts in multitasking. They run analysis of various currencies and trade simultaneously.
- Safety. AI trades inside your exchange account. Your assets are always safe.
- No emotions are involved. OB Trader AI removes all emotions from trading. As a result, this is considered one of the main benefits of using a crypto trading bot.
- 99.999% platform uptime. Forget about lags or service disruptions.
- Transparency. Our team is there for you for support and advice.
Pros of yield farming
- Range of opportunities. From conservative low-yield farms to aggressive high-yield farms.
- Governance. Participate in DeFi protocol decisions via governance token rewards.
- DApp availability. Many dApps are available, usually with simple all-in-one interfaces.
- Earn passive income. Once you manage to join a liquidity pool, there is not much to do anymore.
- Participate straight out of your wallet. Typically yield farming allows you to trade straight from your wallet.
- Small investments. You can start with small investments. There is no minimum investment needed.
Cons of using OB Trader AI
- Limited crypto coins available. Typically, a limited number of crypto coins are available on trading bots. OB Trader AI bots currently cover 36 trading pairs.
- You need assets on a crypto exchange. When trading with OB Trader AI.
- Some supervision is required. Occasionally, you do have to look after them, check if all is running fine.
- Profit depends on trading strategy. You need to find the strategy that works best with your OB Trader AI.
- No stop-loss limit used. Make sure that your package includes a stop-loss limit. OB Trader Ais do have stop losses.
Cons of yield farming
- Smart contracts are vulnerable. Hacks and frauds tend to be common with DeFi LP protocols.
- Rug pull. The liquidity pool creator drains the pool of ETH.
- Complex. Providing liquidity to a liquidity pool can be complex, and you must go through various steps. The chance of doing something wrong is high, which may result in losing your complete investment.
- Carries significant financial risk. Both borrowers and lenders are subject to a high-risk investment.
- Liquidation. One wrong move in the direction of a token's value can result in losing all gains and trigger your liquidation.
- Short-term rewards. Not very stable yet, there is a risk of inconsistent returns. A profitable strategy may prove hard to figure out.
- High gas fees on Ethereum. Unless you invest thousands of dollars, the gas fees may be too high when you want to take out your profit.
- Impermanent loss and price slippage. There is the risk of both when investing in a liquidity pool.
OB Trader AI machine learning algorithms pre-trained on crypto markets give better ROI to yield farming. It is time to embrace the power of AI/ML technology and get the best ROI out of your crypto investment. We offer one of the best trading AIs available on the market with Performer. Talk to us about your preferred choice of AI and the strategy you like to apply.
The Information contained in or provided from or through this website is not intended to be and does not constitute financial advice, investment advice, trading advice, or any other advice.
Do conduct your own due diligence and consult your financial advisory before making any investment decision.