Cryptocurrency: DeFi, Farming, and Staking Megathread

[stringcheese]

It's off and running. The volatility is pretty extreme, but the reward system functions.

I still can't figure out what caused the LP tokens I moved over from spookyswap to double in (displayed)value. Speculation:
One option is double deposit. When I first clicked to stake my coins on basedfinance.io, metamask approved, then had an error (it showed this, green check message pop up, then red check message pop up with blank error box) so I clicked the link again on basedfinance and it went through, slowly. Actually, I got impatient and closed the "waiting" pop up on basedfin, then saw that the coins had gone through...did only one transaction go through metamask via spookyswap(only one could have, the amount of coins was max) but two get approved by basedfinance?
If so, that is a critical error.
The other thing could be that the amount of LP tokens moved over is accurate, and the displayed value is either a) not in USD or b) extra inaccurate.


next step, find nine or so more of these various staking/farming projects to put small amount of coins in and watch.

 

[PRCD]

It's off and running. The volatility is pretty extreme, but the reward system functions.

I still can't figure out what caused the LP tokens I moved over from spookyswap to double in (displayed)value. Speculation:
One option is double deposit. When I first clicked to stake my coins on basedfinance.io, metamask approved, then had an error (it showed this, green check message pop up, then red check message pop up with blank error box) so I clicked the link again on basedfinance and it went through, slowly. Actually, I got impatient and closed the "waiting" pop up on basedfin, then saw that the coins had gone through...did only one transaction go through metamask via spookyswap(only one could have, the amount of coins was max) but two get approved by basedfinance?
If so, that is a critical error.
The other thing could be that the amount of LP tokens moved over is accurate, and the displayed value is either a) not in USD or b) extra inaccurate.


next step, find nine or so more of these various staking/farming projects to put small amount of coins in and watch.

Seems like this tech is really ready for the prime time.

 

[stringcheese]

Seems like this tech is really ready for the prime time.

Maybe if they could find the prime time and copy-paste it with some names changed...

 

[LifeOnMars]

The other thing could be that the amount of LP tokens moved over is accurate, and the displayed value is either a) not in USD or b) extra inaccurate.


next step, find nine or so more of these various staking/farming projects to put small amount of coins in and watch.

possibly of a double spend but unlikely

more likely you miscalculated the amount of tokens that were contributed

personally I wouldn't touch most of those LP pools on beefy, it's a bad idea to go around chasing APR and spreading yourself too thin with a smaller portfolio

markets had a week of green days so buying more and staking now would not be as wise decision, wait till it takes a dump again and get more tokens for your stablecoin

 

[stringcheese]

possibly of a double spend but unlikely

more likely you miscalculated the amount of tokens that were contributed

personally I wouldn't touch most of those LP pools on beefy, it's a bad idea to go around chasing APR and spreading yourself too thin with a smaller portfolio

markets had a week of green days so buying more and staking now would not be as wise decision, wait till it takes a dump again and get more tokens for your stablecoin

So it wouldn't have been possible to stake $130, none of this is connected to anything else that it can draw funds from, all of my other coins are in binance just being there, I verified that those things are what they should be. The USDC from the Coinbase account that I used to start this experiment was $150 and had gotten down to $70 value in its final stage as based and tomb coins, plus $21 in Ethereum on metamask that is still there as well.
something to think about it you're keeping real money in the pool. I'm still going to leave what I put in and watch what happens, I'm here for the game...

Good advice for a real, sustainable strategy. Eventually I wouldn't be spread thin or chase crazy %, if I end up deciding to commit significant money to any of this. Which would be cool! Putting a very small amount in as many different stakes/pools/farms etc as I can have the time/attention for will hopefully help me learn some things quickly before the next good opportunity to invest.

 

[stringcheese]

One thing I could see be an advantage to knowing this stuff really well, even if you never make much money from yeild farming; a tapped in person would know about a lot of coins long before they reach any of the centralized exchanges.

 

[LifeOnMars]

something to think about it you're keeping real money in the pool. I'm still going to leave what I put in and watch what happens, I'm here for the game...

I don't know what happened on your end but with me seems fine

it's good that you might have got more than you paid for

noticed that it can vary slightly from what you'd calculate by hand, usually to the upside

 

[Hump]

Here's a link to a recent story regarding the creation of a large Bitcoin mining operation at Gold River, a place I lived and worked at for over six years, 1967 to 1973.
Forestry then but salmon farming and tourism mostly now.
Interesting possibility here.

Gold River eyes Bitcoin Mining for old mill site

Bitcoin mining and data centres approved as use on Industrial lands

www.campbellrivermirror.com

Take care.

 

[stringcheese]

Update on the experiment,
so far Bshare printing is not close to matching the value lost by tomb falling(which is all tomb seems to do) and the return % has dropped from 440 to 390 in two days. Volitility? Or collapse imminent? Tune in next episode to find out...

 

[LifeOnMars]

not sure what you mean 440 to 390, yearly APR? it's always changing some day higher some day lower, a more accurate indicator is a daily rate. TOMB is meant to be pegged to FTM as BASED is to TOMB, so yes there are wild price swings. You jumped in the other day when the market was higher, which is why I wrote to wait till it dumps hard again so you can average down. This is a set it and forget it type of thing, harvest the rewards once or twice a week at your discretion and occupy that headspace with something else, it's meant to be a passive stream of crypto token income. buy in the red sell in the green, hopefully at a higher price than what you paid

 

[stringcheese]

We will see. Wild price swings will be fine if they end up back in the same place, but only if they end up back in the same place. So far it's losing money. But that's only two days.

If I have this right:
If you take your rewards out along the way it's just past the 3 month period that you've recovered your initial investment and you've made money no matter what happens to the based and tomb coins. Obviously if the coins go up in value over that time, you make money. If the coins dump, you need to make it that far and have pulled your rewards out along the way, not used them to add to your stake in the pool. So you need the project to last close to four months(just this one, based, not generalizing), and hope that the coins stay close to the same value.

 

[LifeOnMars]

We will see. Wild price swings will be fine if they end up back in the same place, but only if they end up back in the same place. So far it's losing money. But that's only two days.

well if you bought FTM two days ago at 1.67 you'd be in the red also, unrealized. I only try to buy when it's oversold and fear in the market, when you feel like selling you should be buying and when you feel like buying more you should be selling. theoretically if the coin stays around the same price for 3 months and you sell the rewards at that price you double your money if the APR stays the same. It's always changing and if it's not performing I'll pull the plug without a second thought.

 

[LifeOnMars]

for the guy who a few weeks ago likened TA to astrology maybe you should learn up

buy when RSI high >80 usually not good

buy near top of 60% breakout usually not good

simple indicators like bollinger bands, moving averages and RSI can be used to your advantage

literally just a few lines like basic high school geometry. it's funny how they play out most of the time, price touching this line resting on that line or kissing off the other line back and around it goes.

 

[stringcheese]

Setting aside that I think technical analysis in cryptocurrency is post hoc, and anything that happens next can be made to fit the "pattern" by adjusting the lines...
...is it really important to your ability to make passive income off being in this LP over the next several months that you "bought low"? I thought coin price appreciation wasn't the idea, stability was?

 

[stringcheese]

Again, I'm just observing what is happening and making note of it. I'm not judging the strategy yet. Two days in: price of coins moving down, reward pay not covering, return percentage also dropping, even with tvl rising. It is what it is, letting it play.

 

[Chee-to]

Stability is the idea in stablecoin or blue chip farms. With shitcoin ponzifarms the idea is to identify a project that won't rug as early as possible, get your money in while TVL is low enough and shitcoin price is still rising or level so that the return is high, and cut bait immediately when it starts to drop. You look to make a couple percent over a very short time, like hours to a couple weeks at most, then move on to the next similar opportunity. Because of the rug danger, this is a high risk play, but when there are a lot of similar development projects launching at once, like what we saw in early to mid 2021 with Binance Smart Chain, you can make a lot of money cycling through them.

Farms that pay out big APRs in the same shitcoin as you staked to farm are simply diluting that coin on a massive scale. It should be pretty simple to figure out what the price action on those coins are going to be.

 

[stringcheese]

This one is definitely a shitcoin ponzifarm, but what stage in its life I've shown up for is yet to be seen I guess. @LifeOnMars you disagree on that idea, or only the time frame?

 

[LifeOnMars]

Setting aside that I think technical analysis in cryptocurrency is post hoc, and anything that happens next can be made to fit the "pattern" by adjusting the lines...
...is it really important to your ability to make passive income off being in this LP over the next several months that you "bought low"? I thought coin price appreciation wasn't the idea, stability was?

well it helps, if both the LP tokens price increases and the coin you get paid increases and you're receiving daily payments it's even better. you're a bit late to the party with this one anyhow, still paying out a decent daily rate and there is less risk as the tokens have moved closer to peg

post hoc not so much, I bought a bunch of FTM on the last touch of green because it has a near 100% chance to revert to the mean yellow line which is the 21 EMA, it's just a line that tracks average price data over the past 21 weeks, the red and green are one standard deviation above and below which indicates it's price action has gone outside of normal range

to say TA is only for stonks is comical because it's all just lines, shapes, patterns which move around on an x-y axis over a period of time

pattern recognition can be used in a variety of ways, it's a key aspect of being human. to recognize, hypothesize, test and analyze is called the scientific method. people can infer what may happen in the future by looking at the past.

 

[LifeOnMars]

This one is definitely a shitcoin ponzifarm, but what stage in its life I've shown up for is yet to be seen I guess. @LifeOnMars you disagree on that idea, or only the time frame?

depends what you define as "shitcoin", TOMB has been around for nearly a year now BASED is an official partner. Definitely not a rug. 2 months old so still early days, the method has proven semi-sustainable over a longer period of time. It's a closed loop system and there is some Ponzinomics to it but where else are you getting 1% per day providing liquidity for a semi-stable pegged token pair?

I'm playing on both sides staking BSHARE and gaining BASED, and the BASED-TOMB pool gaining more BSHARE. Having been in for over a month now the returns have been pretty good, the key isn't to blow your load all in one shot and average in and average out over time.

 

[Chee-to]

depends what you define as "shitcoin"

Anything that isn't a major, functional L1/L2 or a stablecoin.