Yield Farming, some thoughts

Yield farming.

Yield farming is simple, no? You grab the yields, and you buy a doppio with them, if there're enough yields, or, if not, you ... cry (?) in your cup of water?

Maybe not so simple. Let's talk.

First things first: to be a yield-farmer means that you view crypto very differently than how a trader does. Which means you're not looking at price and price-movement, you're looking at yield-valuation.

Which means you buy yield-farms, not crypto/stocks.

So, life moves at a different tempo for you, yield-farmer, than it does for you, the crypto-trader. Yield-farmers don't look to buy (low) and sell (high). Why would you sell? Ever? You don't sell your farm: you'd cut your yields! You just don't sell.

So, when somebody says: "Buy this SH!Tcoin! It's gonna sky 10x today!" your automatic response is: "m'kay, but what are the yields on this?" And they scream: "22,000%! with this other SH!Tcoin!" And that's when you run away from this pump-n-dump scheme, as fast as you can.

Is the SH!Tcoin going to sky? Maybe for them, but maybe not for you, see?

A yield-farmer is different. I'm not looking at a possible 10x now: I'm looking at 10 years from now my income (still) 100%+ replaced by yields. Price and profit have almost NOTHING to do with that.

So, when people ask me if the price of a coin is going to go up or down, my answer, invariably, is

"yes. 🤓"

But my answer should be:

"mu. 無"

You're asking the wrong question.

I don't CARE if the PRICE goes up or down. I'm a yield-farmer: I care about a coin's VALUE.

So, okay. To be a yield-farmer, you need yield-farms.

"How do I get yield farms, geophf."

First you follow me. 😎 Then read what I've published on crypto. 

Then get you yield farms that work for you.

Then you yield-farm for, leik, forevs, yo.

"Yeah, but, okay, but how do YOU get $100+ every day in yields, el geophf?"

Um, I did the above? 🤓

But let's look at some practical, day-to-day, aspects of yield-farming, yes?

The first practical rule of a yield-farmer is:

1. patience.

Be patient with yourself. Be patient with your yield-farms. You CAN get $100/day in yields, if'n you throw $100k at yield-farms (maybe), but what are you going to learn that way?

May I suggest an alternative?

See, I started my crypto-journey 10+ months ago with 0 dollars and 0 cents to prove something:

1. because, well, I HAD $0.00 to my name 😅
2. because a lot of you do, too.

If I throw $100k at crypto, what does that prove? That the rich can get rich in crypto? Yay? 🤔

Here's the thing: if I threw $100k dollars at crypto 10 months ago, I would've LOST $100k dollars in crypto. You learn by doing, but learning is HELLA-hard, and it HELLA-hurts.

Learn, but start small, like me, please, with $100 here or there and see what works for you.

So, here's my alternative to APING IN WITH EVERYTHING YOU GOT NOW!

• take 10% of your monthly income (cut out the doppios, fam: that's 10% right there)
• and invest 10% OF THAT in something

If you like it after a week or two, invest a bit more into that.

That's step 1.

That makes your portfolio YOUR portfolio, and YOU know how it behaves in markets up, down, and sideways, COLD.

That's why I'm so reticent to share my portfolio. People think if they copy my portfolio, they copy my returns, which is in NO WAYS the case AT ALL.

I got to my portfolio over 10 months by making severe, painful, and STUPID mistakes, over and over again.

GOD, I'm so STUPID!

I'd really like you not to do that, if possible.

But you will. So make those STUPID mistakes, and learn from them, like I did: smol.

"Okay, but what do I invest in? I mean: to yield farm like you."

Well, invest in what works for you. But what works for me are yield-producing instruments (duh), and the biggie there now is the LP.

You're gonna say 'but IL!' ... aren't you.

Okay. So now you've got your yield farms, farming coins of value, and things are starting to hum along nicely.

But you're not making the yields el geophf reports every day (that JERK!). And now you hate yourself and you wanna die.

That brings us to rule #2.

Rule #2 of the yield farmer.

α. Don't compare yourself to anybody else.

β. Except you. Compare yourself to you last week, last month, last year.

... which means:

γ. Measure. Measure returns every day.

You measure: you adjust. You adjust: you win.

It's that simple.

"Ooooh! THAT's why you're Mr. Spreadsheets!"

You get it. Somebody needs a Gold Star(tm). 🌟 

There are some pragmatisms ('isms' ... lol) that you pick up along the way, and I can share a couple.

1. Remember patience? Do your yielding and stuff once a day, then put the phone down, or whatever, and go for a walk, spend time with your family. That.
2. Negatively: don't let transaction fees eat into your yields, or, positively: yield when fees are 1% or less.

How does that show up? (Landmark Education showing through here: 'show up' lol)

$MINE-coin yields: $40.96
transaction fee: $0.39

Yield? YAS GURL SLAY! 👏

Counterexample:

$MIR yields: $42.56

transaction fee: $0.49

Yield? HELLZ NAH, FAM! 😤

You see something interesting here: I have $250 in yields on @SpecProtocol which I won't touch now, because the transaction fees are $4+.

$250 in yields I won't touch now, because of some silly rule? Yes.

That 'silly rule' is to protect me: yield farming should be cheap. This rule keeps it that way.

So, obviously: yield farm on blockchains and protocols where the transaction fees are very, very, VERRA, hella-low, fam

Else what even are you doing?

I can't even what even.

That last one isn't even a rule, unless you want rules like: "You need air to breathe." If you need a rule like that, then you need a rule like "you need transaction fees to be less than 1% of your yield to yield farm, fam."

So: a 'No rule'-rule that explains a rule.

Rule #3: negatively, don't swap your yields.

This may strike some of you as odd, but it makes sense.

Does your yield have value?

It had better, else you're wasting your time.

SINCE your yield has value, if you SWAP it AWAY, you're DILUTING its value.

So, the contrapositive to that rule, or, succinctly: a yield farmer seeks and creates value, SO:

Rule #4: reinvest yields into the yield farms

Where do you invest your yields? Into the farms that are producing it, duh! That way you create a 'feeding frenzy' of yields, or: yields feeding yields; value producing value.

Conclusion

In Common Lisp we have a term, REPL: 'read-evaluate-print loop.'

Yield-farming is a REPL.

You collect yields. You evaluate your stakes' performance. You print your reports (SPREADSHEETS! YAY!). Then you loop.

Daily.

G'nite, fam. I love you.