So how do you go about farming online?
By this, I mean participating in Liquidity Pools. What do you do to prevent losses or mitigate them on your LPs?
I went to visit my little "farms" and whilst my chest tightened and had me heaving a sigh seeing how my farmers (LP'd assets) got a beating, I had a little bit of consolation at how my lovely farmers (the Zombie and Tropical Gull) are working diligently without asking too much from me.
The Zombie was one of the 10k LawPunks minted on the SmartBCH network last year and although I missed the minting because I wasn't well-informed back then, I was lucky enough to have won one on a Twitter giveaway. I could have sold this punk back then because prices were crazy but learning there was a staking possibility, I held on to it and when the staking went live, I upgraded it a wee bit and sent it to the PoPunk farm and it has been getting me some $LAW token since. I sent most of those earned $Law to other farms, sold some, hold a few. Thanks to this, I was able to experience how it is to "farm" on the internet.
Back to "virtual farming," I can say I've had my share of not-so-good experiences from it. And since I am still learning, I would just like to record and share some of my blunders in LP-ing (I just coined that word, don't know if such term can be understood in crypto-verse, lol!)
And here they are. I realized that they are things I must learn from:
- I should really ask myself, "Will farming this token worth it to risk any of my paired assets?" If my gut says no, I shouldn't go in, but there were times when I get swayed by the APR. (It's not really worth it to chase the APR.)
- I should know when to exit. There were times when my gut tells me "Alright, you've tried it, you've tasted how it's like there, now it's time to pack up your bag and go!" but then I still insist on staying and in the end, I'd find myself shaking my head because you know, I regret not listening.
- I should know when to let go. There are times when I "feel" that a farmed coin is no longer giving me any benefit nor have any future to it but I still keep it like it was a treasure. I should have sold it while it is still worth something! Oh, I can't even count how many sh*t coins I've accumulated due to this mistake.
- I should just go on with the stablecoin pair if I really want to farm. Take for instance pHBD-USDC on Polycub. There's no impermanent loss in such LPs. If there's a risk, it's on the coin being farmed.
I am just glad to have learned some things here in Hive. The opportunities that this blockchain offers is vast. Talk about the ability to stake Hive (Hive Power), Leo (Leo Power) and some Hive-Engine tokens and then being able to "farm" more of them through different ways like curating, delegating and even earning APRs on some of them. This reminded me of an awesome post I read last night, "How Hive is a Gateway to Crypto" and you might wanna read it too especially if you are new or still learning just like me.
In Hive, we also have a safe haven, the "oasis in the sea of red" as TM puts it, Hive's very own stablecoin, the HBD which is holding up nicely amidst the uncertainty of these times. And talk about the HBD Savings where it pays 20% APR and the compounding opportunity that it presents.
And so, the grind continues and gonna keep building! And yes, with the current price of Hive, we can buy more of it (than before) with HBD.
Photo my own. One screen captured from BlockNG & Tropical Finance Dashboard. 130522/11:50ph