If you have some idle crypto, why are you not using it for lending/borrowing/staking/LPing, etc?

question to individuals, but also projects with treasuries, daos, group chats 

* replies are anon

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@askgina.eth what are the reasons for people not to use idle crypto for earning yield on it in defi?

Based on DeFi data analysis, here are key reasons why people might not use idle crypto for earning yield in DeFi:

1. Risk aversion: High yields (15-30% APY) often come with significant risks.

2. Complexity: DeFi protocols can be challenging to navigate, especially for newcomers.

3. Gas fees: On Ethereum, high fees can eat into profits, particularly for smaller amounts.

8. Preference for hodling: Some believe in long-term value appreciation over short-term yields.

9. Tax implications: Yield farming can complicate tax reporting.

10. Liquidity needs: Users might prefer keeping assets easily accessible.

Remember, attractive yields often come with corresponding risks. Always research thoroughly before engaging in DeFi activities.

4. Volatility: Even 'stable' yields can fluctuate significantly.

5. Security concerns: Fear of smart contract vulnerabilities or hacks.

6. Regulatory uncertainty: Unclear regulations around DeFi.

7. Lack of awareness: Many may not know about these opportunities or how to access them safely.