The Scallop Investment Adventure: Balancing High Returns and Risks
**Investors in Scallop** MystenLabs: It feels like the official SUI. Basically, this is like my personal memo, so please DYOR (Do Your Own Research) if you read it. https://app.scallop.io/referral?ref=66f7cba41780368efc67bc4f DeFi can offer high returns (like 800% yield), but it comes with risks. Here are some of the main risks in DeFi (Decentralized Finance): - **Impermanent Loss**: The value of assets deposited in liquidity pools can decrease due to price fluctuations. - **Rug Pull**: A tactic where project developers run away with the funds. - **Token Price Volatility**: Tokens have very high volatility, and sudden price changes can occur. - **Security Risks**: Smart contracts can have bugs or vulnerabilities that can be exploited. - **Regulatory Risks**: There is a possibility of being banned or regulated by authorities in various countries. I am actually investing, and it's very user-friendly as you can display it in Japanese next to the gear icon on the top right✨ In the ...