I have been thinking about trying this yield farming on liquidity pools myself just to learn and understand better but at the same time I'm already short on time. I love following this series of posts by the way.
The yield in the past weeks has been quite insane, what I do wonder thoug is if the 'loss' comes from impermanent loss or just from the value of the coins going down. If it's the 2nd it's not all too bad I would say and you are still earning a ton extra coins.
The past 2 weeks have been nuts because of chasing the perps dex narrative plays, but we are already starting to see a slowdown as more money is flowing into those pools and therefore my yields are getting smaller.
The loss comes from impermanent loss -> so, yes, I am holding more of the coins from the underperforming asset, and it would've been better just to have the tokens.
Ok, I experienced the impermanent loss way back the first time I tried to get some passive holdings on a shitcoin I once aimed to hold for the long run. That was before Uniswap invented the ranges though. The thing that holds me back with the yield farming is that it seems to be a lot of work to manage the positions. Basically, what you look for the this impossible trilemma, Low Liquidity, Low Volatility, High Volume :)
I'm looking forward to the next report! You should make a visual chart week by week with the total portfolio value and the expected yearly returns side by side.
Good suggestions, let me have a look!