The Hit-and-Run APR Chasers

in LeoFinance2 years ago

This is one of the issues I've noticed about all the DeFi projects out there. They're all full of hit and run APR chasers. They just try to get in on the new project's hype and exit somewhere at the top before more and more selling of the native token happens.


They hit up new DeFi projects, but not because they care about the project succeeding. In most cases, they think it will fail. They are just in it for the hit and run early high APR.

They want to get in early, and dump the native token before more people do the same. It's recipe for their own personal success. Potentially.

Sometimes it doesn't work out. But it's a risk they are willing to gamble on. Gamblers. Chasing the high APR for their risk high. The gamblers high. Well, at least for some people :P

That new high apr rush/high! Then, exit/run after a few days, or maybe even hours. They don't care about the token of the platform. Their only interest is in cashing out and extracting as much as they can, while they can.

Because they know that some of these projects are going to end up in a rug pull. Some of them might get caught in it, but they might also profit well my taking the risk. So they take the risk.

And if it's a legit project, it doesn't really matter. It's all about taking those profits. Making the token bleed and crash doesn't matter. It's all about the gainz.

The safest way to pull this off is to stake in stable coins. Safe, as long as they don't lock your funds and prevent you from unstaking them. What they don't do is get into staking the native token. Because they are actively pushing the price down by selling all the earnings that they get.

With staking in stable coins, or another token that isn't the native token, you're not going to lose your investment that's locked up in stake while you sell sell sell. You don't care about the native token, you're just trying to get as much as he can while you can. That's why you stake in anything but the native token just you can get the earnings and cash out.

Stable coins are the safest because there's no volatility, or hardly any, especially compared to all the other tokens that can go up or down according to what's happening in the market. Then when they are ready to bail, they just on stake there stable coins or whatever else they were staking, and the lost no money other than a deposit fee.

By that time, they would have been selling all the earnings and made back there deposit fee anyways. So this is what's happening all over the place in DeFi. As was happening in Cub Finance. That's what us long-term CUB holders have to contend with.

Posted Using LeoFinance Beta