Keep Your Shirt On

  1. Users buy X farming token to take advantage of astronomical APR for providing liquidity. Price goes up.
  2. Users provide liquidity and start receiving insane amounts of farming token.
  3. Users sell farming tokens to lock in profit. Price goes to 0.

Manage Risk

To keep your shirt, don’t bet it! Keep your exposure small and monitor price action closely. Whales are going to hoard tokens and wait for the price to run up so they can drop bombs on the liquidity pool when euphoria peaks. Remember, exposure to these farming tokens is nothing more than a gamble, so treat it with the same caution.

Strategy 1: Swim with the Big Fish

The safest money comes from following whales to the single-sided pools. We can’t control prices like they do, so stake your coins and dump as often as you can! To help you with this, we’re considering strategies like this on Reaper, so you can go about your day without stressing about farming token exposure.

Strategy 2: Playing with Fire

Especially in the first week, farming tokens will experience volatility that would make trad-fi investors’ stomachs turn. For a lot of you degenerates, this means exciting trade opportunities — so strap in and ride the wave. I’d equate the risks here to ‘high speed motor chase’ or ‘making toast in the bathtub,’ but I know a lot of you are into that. Have fun and keep your trades small.

Strategy 3: Be Everyone’s Exit Liquidity

While the quadrillion % APR might seem enticing, providing liquidity for these farming tokens is the most difficult way to make money. You’ll rarely make as much as traders and the interest & fees aren’t nearly enough to make up for impermanent loss — volatility is just too high. I’d only recommend staking liquidity if you plan on micro managing your position, adding liquidity in-between volatility spikes and withdrawing when shit hits the fan. Much easier said than done.

Strategy 4: Ultimate Big Brain Strategy

Go outside. Learn a skill. Eat some ice cream. Come back once the dust settles and pick up some commemorative tokens for the low-low price of $0.00.

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Justin Bebis

Justin Bebis

Smart Contract engineer focused on high-performance blockchain networks