Hello LBIers, normally we have Hetty writing for us on a Monday but today you have me, SSUK and im going to talk about, hmmm.....let me think....oh hell, I'll talk about defi farming because that's what seems to be popular to write about at the minute on LeoFinance. In this post im talking about defi farming in general, if I mention CUB, im talking about it, if I dont, im not.
Ok, so in general I dont like holding farm tokens. I have expressed this before, maybe not so much from the LBI account and more from the SPI account but I dont like farm tokens. I like farms and what they offer but I dont like farm tokens. I've been involved with defi farming for 30ish months, I dont claim to be an expert as I dont make money on everything I've ever done but I've farmed on alot of different farms using different models and over 4-5 blockchains. I've been involved with a few scams as well thinking they had legs, some did and others did not but I've been around defi and been playing the game. One thing I always notice is that the farm tokens your farming will always drop in price over time. There will be 1-100 that stay stable and are even increase im sure, I can't think of any off the top but there might be a few. Im talking about the other 99 were investors buying farming token to earn the highest APY's normally lose money.
The massive APY's will pull some people in. They vision the farm token mooning while they hold tons of them because they will smartly compound them like crazy and buy more on every dip. They daydream of what they will be earning in 6 months and 1 year's time from now when the token price goes back up (it's just on a correction now) and hope it's enough to give them some sort of financial freedom. It's a nice fairy tale and one that many fall for over and over as they bounce from one farm to another going boom or bust on each one. These people will always be broke because they are being sold the dream of getting rich quickly for no work, no effect and they fall for it over and over because each new farm is better, it has a new trick, this one has fixed some problem, that one uses taxes to burn supply and each new farm is a new chance/hope.
We all know that in general, the price of farm tokens go down over time because why would they not? They have high inflation, no real use case other than earning more, lots of selling pressure with no buying pressure and are given away for free. This does not mean farming can not be profitable but holding harvested farm tokens is not a great idea if you like profits, buying them is almost certainly a 1-way ticket to losing some money. There is a strategy to use to make the most ROI from farming, it's very simple.
We saw with CUBfinance, it took around 2-3 months before the price of CUB dropped to under $1 from a high of around $12-14. polyCUB's decline has been faster and right now BSC CUB is offering better APY's after the 50% penalty is factored into polyCUB farming. polyCUB is not the same as it has a hardcap which is not standard. I know most are not waiting the 90 days because I can see that from the 4.9 million in circulation, 3.4 million are locked in XpolyCUB tokens so factoring in the 50% penalties is very valid when working out the APY. I use CUBfinance on BSC as an example because we all know it but this could be any farm out there. polyCUB, I dont know, I've never been involved with a farm token that has a small hardcap before so we'll see if they can create more demand for buying.
Getting involved with defi farming on CUBfinance last year or this year with polyCUB has been learning alot of users how farming works giving them the confidence to venture outside of CUB's rug proof and pre audited farming, maybe jumping into a new farm with massive APY's, put some money into a "tronchain" like scam are something else that will get them wrecked. Education is expensive wheather your paying for traditional schooling are losing money and learning from mistakes in crypto. When you learn, you increase your chances of making money, when you dont, you'll repeat the same mistakes and lose money. Its that black and white.
The best APY's on farms will always connected to the farm token for that farm. So to get the best APY's, you gotta buy the farm token, I've just spoken above that this is not a good investment as in general farm tokens will go down in price as more people sell over holding/reinvesting. No point in earning 500% on something that drops in price by 95%, that's a sure way to lose money. The best way to farm is to use crypto you already hold like BTC or smart chain cryptos like ETH, BNB, POLY, TRX, AVAX, SOL, etc. BTC is BTC and smart chain tokens have the use case of being used to pay for transactions and are better to hold than a farming token. Using cryptos you already own will not produce the best APY but there is no exposure to the farm token risk involved as your not really investing anything, you're more just staking your crypto to the farm for the APY. Of course you could get rugged but you cant plan for that.
Everything that promises to pay you out something like 1-2% a day is a scam. Remember how big bitconnect got? we all say of course that's a scam but i'd bet a few reading this were involved with it. Scams can be profitable if they run long enough but the way it goes is you make some $ from a few, build your confidence and then the one you go hard into gets rugged, you get wrecked and move but to square 1. The smart contracts might look legit, the marketing team will have juicy ref bonuses for recruiters and it'll work perfectly until it doesn't work anymore. See-through the bullshit and resist the FOMO. I notice as time goes on, these sorts of projects are lasting longer, a few years instead of 3-18 months as most have added new levels like transaction fees, they might be called taxes or token burns but they will claim to be deflationary which they are not because they are minting your 1-2% profit per day. Watch out for these.
In general, if it looks too good, it is. Basic research can help you big time. Google, Reddit and Youtube are great resources for quick information. If you see "scam" attached, you should move on. If the founder/dev is claiming he's/she's gonna make you rich and uses all the right buzz words, you should run. If they promise to build games, NFTs, give future airdrops, blah, blah, promise the world on a string, chances are you being finessed by someone that whats to convert you to a customer. It's really the wild west out there out so please be very careful using your newly acquired farming skills if venturing outside of CUB.
What do I think of CUB?
BSC CUB is doing what is it supposed to do. It topped out after launch and has slowly declined ever since. I use CUBfinance still for its kingdoms on my personal holdings. It's very solid in my POV
PolyCUB is still too new, the price has gone to hell but we'll see what happens when the hardcap is reached and if buying pressure increases. We saw the huge drop in APY's a few days back and that's gonna drop by 50% again around 30 days from now. All I know is that anyone that bought into polyCUB is losing money right now, some people might have bought in at $3. Ouchh. When the polyCUB hardcap is reached, it could all turn around big time. I would not bet against it but I'd need decent odds to back it. Comparing polyCUB to BTC is a bit of reach in my option, if not a completely bullshit claim. That's like comparing Justin Sun to Vitalik Buterin.
Sorry but the amount of shilling for polyCUB has been ridiculous. The main LeoFinance tribe account has uploaded almost daily for 3 months shilling polycub. This is the main account for HIVE's biggest community/tribe. Everyday!! Poly, poly, poly, poly. What about the HIVE blockchain where LEO is and we are all invested? The price of LEO is down 80% from it's ATH during a bull run. As fund manager that holds access to 3-4% of total LEO in supply, not so happy with the ROI so far.🤨 HIVE has doubled in the past year, ETH has doubled, etc. Anyways, to sum up, im not sure what polyCUB will do. Probably going to $200 per token and we can all buy self driving Telsa Lambos with self-paying loans and fly them to the moon.
The best farming strategy that has helped me personally make more from defi than I do in my regular job is 3 things.
Stake - Create LP's/deposit crypto you already own. Dont invest by buying the farm token. Use BTC, ETH, BNB, MATIC, or stables to stake.
If you dont have any cryptos outside of HIVE, you probably should not be defi farming and you'd need to go back to grinding/saving to build up some savings first. I dont consider defi farming to be a low-risk thing for beginners and should only be done with funds you can afford to lose, like you could get rugged and not reall really care.
Harvest - Sell those farm tokens as fast as you can and convert them into crypto like BTC, stables or smart contract tokens that are used for LPs and transaction fees.
Reinvest - Use you harvests to add more to your LPs and compound, and watch your investment grow. If you wanna stake the farm token or create an LP with it to get some of those highest APY's, you can justify it because you would be freerolling. I would not advise it but if you are freerolling, there's no risk.
These are just my views, you are of course free to do as you will. Im a simple person and look at things from a simple POV, all the complicated tokenomics and buzz words are over my head. I look at what something does now and dont care so much about what people say it will do at a later time because most of the time, it never comes and when it does, it never loves up to the hype. What I do works for me, it might not for you. I see everyone writing posts about farming, some giving good advice, most repeating words used by others so I thought I'd throw one out there.
Thank you for taking the time to read through today's post, I hope you found it interesting. I'll be back tomorrow with something else that'll think up tomorrow morning. Im thinking to write about the LBI contact team and giving an update on that.
Have a great day.
Posted Using LeoFinance Beta
The voice of experience ...
... and yet amazing how "the next big thing" comes along, especially if "attractively packaged" thereby making it an irresistible new "shiny object" and ... Here we go again! 😏🤷♂️
Will PolyCub be different?
Yep. And "took down" CUB along with it, so far ...
This is essential IMHO. I know the LeoFi team has put a lot of effort into marketing. Effective? I suppose we will both find out soon enough.
Thanks for writing this "contrarian" post @lbi-token / @silverstackeruk. I believe our community would be better served, if there were more like this being written. Which, in turn, ("... iron sharpening iron ...) would lead to better outcomes ...
"My $0.02" ... Have a good day! 👍
Posted Using LeoFinance Beta
Your very welcome @roleerob. Im not a fanboy and to be honest, i had wrote about 1000 more words and deleted them off. Someone has to go against the grain sometimes.
I hate seeing people lose money.
Thank you for your detailed comment and feedback. I had to google the word "contrarian", good thing im better with numbers than words. lol.
You 2 cents are worth more, have a great day also. Thank you
Ditto. Especially if it is mine ... 😉
Okay, my $0.04 then. Inflation is a "real thing!" 😉
Seriously, I appreciate the fact you are willing to talk straight. Keep it up! 👍
Posted Using LeoFinance Beta
My take is that marketing efforts were deployed too early. xPolycub will become a collateralized asset meaning that you can take out loans based on your xPolycub position but that is still in the works.
I believe that more people would have joined if marketing started after collateralization became a feature.
Just adding my two cents on top of your two cents.
Posted Using LeoFinance Beta
Well ...
Reference has been made to adding both bonding and collateralized loans. One of these days (will this new functionality come with a fully audited review of the associated code?) ... If I was to give fuller input ($0.04? 😉), I would like to have seen this functionality fully operational at "launch."
Why?
From my understanding listening to their AMAs, etc., the LeoFi team views this as critical to driving the demand side of their new platform. How do you have a successful "ecosystem" without addressing demand? Was it sufficient to just rely upon high APRs at "launch?" Which was known, in advance, to be designed to "evaporate" pretty quickly? Was it hope that their MVP approach would be good enough?
Only they could say why they elected what is happening now - a "phased roll-out" ...
Posted Using LeoFinance Beta
I agree with everything you said but it's always up to the team how they want to launch their product. It's a learning process for all of us I guess...
Not a fan of how they handled it so far but I still have high hopes for it. At least the holder numbers are growing, slowly but surely. 550 isn't that bad but it needs to keep growing to become sustainable, that's for sure.
Posted Using LeoFinance Beta
I have seen most farm tokens drop and it's one of the reasons why I didn't want to farm too much. I know PolyCUB has different mechanics but that is why I am doing a wait and see approach. It will prepare me for the next few CUB releases.
Posted Using LeoFinance Beta
That's a smart move. Act on what you see happening and not on what someone says will happen. I'd guess each new farm will have a new trick as they learn from the last. You could say that the LeoFinance community has been monetized and are alpha testers for CUB to put it a nice way or we're cows being milked dry if you dont. Either way, the money will go to those that follow and act on what they see. Glad to hear you have some discipline.
all I can say is that I'm happy LBI is taking care is the defi side of things for plebs like me. I wouldn't touch defi otherwise, I have too few braincells left :P