Is Yield farming still a good PROFITABLE idea in a Bear Market?🐻
As the former DeFi Farmer 👨🌾, I'll answer this question for you👇(1/10)
I come from a time when you were able to get over 70% APY on stablecoins, either with boosted rewards, where you got part of the yield in a crappy gov token, or via dangerous looping mechanisms.
Either way, those numbers are hard to come by in this market.
(2/10)
That does not mean you can't make money with yield farming, liquidity mining or LPing, you just need to find harder than before, to get a worse yield than before!
If you gonna do that, you can go 2 ways: (3/10)
1⃣ You either find a good yield aggregator or optimizer, like @ClipFinance (shout out to my friend @Dynamo_Patrick), @GrizzlyFi, @beefyfinance, or others like these, that will get your money and put it to work for you and you don't need any extra work.
#notanad (4/10)
2⃣ Or you look for the source of yield yourself, without a middleman, using Uni V3, @perpprotocol, or others.
So why would you choose one over another? (5/10)
•Yield aggregators are simple, easy to use, and fast, you deposit your money and they do the dirty work for you.
•The second category requires a bit more knowledge, higher risk but higher rewards. (6/10)
So clearly we need to choose either Perp or Uni V3, right?
Wrong.
If y'all mfs don't know how to use them, Impermanent loss will come for your money, or maybe you'll end up liquidated. (7/10)
On Polygon, with Uni V3, if you provide liquidity to ETH-USDC in the $1150-$1450 range, you can get 1142% APR
But the downside is that you need to always be aware of the range, adjust it if needed, and if ETH goes down, you will have a bit of impermanent loss to deal with (8/10)
I'm trying to make a point here for the people who follow me and sometimes ask me where should they put their money.
It is all up to them and how much effort and time do they want to put into it.
This is usually my answer: (9/10)
So compared to before, Yield farming is way less profitable, but it isn't dead, there is still money to be made if you focus more on knowledge rather than a high APY. (10/10)