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For the average player, though, I'd say it's not worth it.
The idea is that you'd put green and blue slimes in a slime hutch and use them to farm slimeballs to craft eggs with. (Plus a little bit of money via petrified slime, which sells for like... 75g?) And you'd raise the red/purple slimes outside, so you'd have like 50 in a pen, then you kill them back down to like 20 or so. Like 10 days later, you're back at 50 slimes, and you kill them again. It's basically just another way to get coal, iridium, diamonds, etc. without visiting the mines. But it takes a LOT of setup, and it's not that great to begin with.
The only farms I'd recommend having more than 1 slime hutch on is a mining/fishing themed farm. The slime is used to make fishing bait, and the excess eggs sell for a good chunk. But for an average player, focused on farming and a jack-of-all-trades playstyle? Nah. Just ignore the hutch. Like I said, build one and then destroy it so you'll get egg drops for additional income - it pays itself off.