The Core Difference
Lending (like RheoFI) is passive: you deposit an asset, earn a floating interest rate, and can withdraw when utilization allows. Risk is limited to the collateral and oracle risk of the single market you chose.
Yield farming typically involves providing liquidity to an AMM pool, earning trading fees plus token incentives. Risk includes impermanent loss — you may get back a different ratio of assets than you deposited.
When Lending Wins
- You want predictable, stable yield
- You're holding an asset long-term and don't want to sell
- You want clear, bounded risk (isolated market)
When Farming May Win
- You're comfortable with impermanent loss
- High token incentives justify the additional risk
- You're providing liquidity to a stable pair (e.g. USDC/USDT) where IL is minimal
RheoFI's Position
RheoFI focuses on lending, not farming. No token incentives inflating APY numbers — yield comes purely from borrower interest. What you see is what you get.
