Balancer (bal) is the smart contract rebalance yield farming and dex you want to be into.

Celsius is good, staking has it's drawbacks at times... and never stake what you are comfortable loosing. Adding funds to liquidity pools is VERY speculative.

Search 'impermanent loss' when it comes to liquidity pools.

balancer is cool. provide liquidity, earn BAL. it's pretty damn good too.

There's been all kinds of coins where the code has proven to be buggy and the money drained. https://www.coindesk.com/bzx-reclaims-8m-hack

Does yearn have transparency? Like does it show it's positions and transfers it makes? There would be no reason not to. Or does it just say, "made this much today!"

Lol. I put a link above that shows the current strategy each vault uses to earn. You can verify them yourself.

Coinbase listed YFI today. They have a stringent process. They don't just put up any ol' sh*tcoin.

But imma stop leaking alpha. Carry on.

Yes, they have a stringent process all right. They load up and front run and then list.

They have ETC which has been 51% attacked mutiple times in the last few weeks. Very stringent in deed.

Thanks for the info! Yeah, I don't really have the time to research it enough to satisfy my paranoid scepticism, but I can't say it's not tempting . One thing I've never understood however, with these interest earing setups, is who is paying all this interest? It's a lot of money, there has to be some very specific and compelling use cases for people to do that.

This was the answer I got in the ETH thread FWIW

Ty! What does that actually mean though, that people are putting up fiat to mine proof of stake coins, and this is a service to provide crypto liquidity for them?

mmmm seems like you're conflating a few things here

so to farm tokens you usually need to stake, or put up, or offer, or provide liquidity to the app. this stake is locked up and you are rewarded with farmed tokens. so as you provide liquidity to this platform you are rewarded farmed tokens. this is the vicious cycle of revolving liquidity as people migrate from "app" to app farming the most profitable token.

these tokens have value in their own right. often they represent equity in fees that app runs. they can represent governance (think being a general partner or limited partner in a hedge fund) which allow you to vote on development, founders pay, etc. they can represent unique ability to interact with that specific app that you may not be a able to do otherwise with eth/usdt/dai etc.

now lets get back to the first paragraph-- often this liquidity you provide is what the platform needs to function. so you're often providing eth, usdt, USDC, dai, yfi, cream, whatever. often you provide a mixture of this.

so degenerates have basically figured out the quickest way to farm without owning the actual underlying asset you need to "stake, provide, put up, etc." is to just take out loans. This allows you to also leverage yourself as you'll be able to farm more tokens. I think you'd be hard pressed to find people moving serious $ (say > 100k) that are using this method-- its just too risky. so its basically degens, gamblers, small ppl trying to 20x their account overnight. Personally I farm, but never with borrowed money.

is it dangerous? **** yes, because you can take out loans that are almost always denominated in dollars, and you need to pay back your loan in what you're taking out. so imagine this:

you put up eth as collateral
you take out usdt to farm token CCC

your loan is in the dollar amount of usdt. your collateral is in eth. two common secnarios for downside risk:

1/you could get margin called because eth swings down and u cannot satisfy a increase in collateral request
2/you may not be able to pay back your loan in usdt because CCC just went -80% in 1 hour. you lose your collateral in eth because your carry cost now exceeds your cash flow from farming.


so I could keep going on, but I hope this explains the basic nuts and bolts of what's going on. But to reiterate, are the yields real? yes

Aren't most people just selling farmed tokens right away in an effort to offset the costs of whatever random DeFi app they have locked funds with to farm the tokens?

I would expect the vast majority of these tokens to slowly deflate in value over time as people continuously sell them to try and break even or make a profit. New tokens will spike in price if there is a high yield available, and the price could remain high for many months.

Most profits available are going to go to the earliest adopters and devs who are able to sell tokens during the initial price spikes. Later adopters may be holding bags of low value tokens and see any funds they locked up go down in value as well.

Here's an example of people getting wrecked:
https://uniswap.info/token/0x54b8c98...2bfd3a9349a38c
https://printer.finance/

Lol yes. Most farms are lol and result in rekt. Especially if you're trying to farm by being lp in farmcoin-eth pair. Everyone just dumps on you.

You really need what to look for to get not rekt.

a) no/minimal dev share
b) no mint function
c) timelock
d) audit
e) many other anti rugpull features.
f) actual reason for the token (most of these lol food coins are just clones are have zero purpose)

If any of you have used Uniswap before they're doing a token now and any and all historical users of Uniswap are entitled to 400 UNI, which is worth about ~$400 right now, but lots of price discovery going on. If you've provided liquidity before, you'll get substantially more than 400 UNI.

https://uniswap.org/blog/uni/

So when all the yield dries up, where does yearn go?

Fwiw, yearn was made before all these crazy farms. It was effectively the first farm and everyone then saw its success and copied it, all the while giving yearn ability for more yield. But its original purpose was for yield on borrow/lending platforms (compound, fulcrum, bzx, etc) and that's not drying up anytime soon. There will always be a market for that. What's drying up is these crazy foodcoin farms. But now uni just launched a token and liquidity mining starts tomorrow and gas fees are already crazy. That's nothing to do with yfi but crazy cool stuff continues to happen in crypto.

food coins are rekt

but rebase coins with game theory will be fascinating to watch unfold in the next few years.

So what should i do with these 800 free $uni i got? any good argument to not sell?

Not saying it's the same, but if in 2006 Facebook gave out shares to everyone that had a Facebook account prior to that date, would you dump those shares?

Another analogy I saw. Total # of UNI is 1bn. Current price is $4, meaning fully liquid cap is $4bn. Circulating cap is sub 1bn. 277m according to CoinGecko.

Uniswap does more volume than Coinbase on most days. Coinbase IPO valuation expected at 15bn.

Is this a new form of ownership? Can you equate the value of these tokens to shares in a business? I don't know the answers to that, but some things to think about.

Well I’m hodling for now. Just made a few thousand! This really is magic unicorn money. 4K just dropped in my lap out of thin air. I didn’t even know this was happening until I started seeing $uni trend on my Twitter.

so far i've found it on 4 wallets. gonna take a deeper dive to see if on others.

$8.40! I may sell half soon.

There is a function in the Uniswap smart contract to give 0.05% of fees to token holders, lowering the liquidity provider fee to 0.25%. I expect it to be turned on in the first round of voting.

edit: The fee switch is locked for 180 days apparently.

sushi has this too. my fear for all these AMMs, unless they have a serious stronghold on usage, is that if liquidity providers are being diluted (this 0.05% fee dilutes LP) they will just leave to another platform where they aren't diluted.

That giant sucking sound.... the value of your alt coins/tokens...
It's been brutal lately.

Altcoin Roulette its called. And not the kind where you spin a wheel, the Russian kind, but with your bank account.