There and Back Again: a Yield Farmer's Tale

There and Back Again: a Yield Farmer's Tale

By DavidJ | A Farmer's Tale | 13 Nov 2020


Once upon a time, there was a farmer, named ๐Ÿง‘โ€๐ŸŒพ.

๐Ÿง‘โ€๐ŸŒพ sowed his fields and picked his ๐ŸŒพ with his bare ๐Ÿ‘.

๐Ÿง‘โ€๐ŸŒพ also tended to his liquidity provider animals named UNI the ๐Ÿฆ„, CRV the ๐Ÿ”, COMP the ๐Ÿฎ, and SUSHI the ๐ŸŸ.ย 

UNI the ๐Ÿฆ„, CRV the ๐Ÿ”, COMP the ๐Ÿฎ, and SUSHI the ๐ŸŸ yielded ๐ŸŒˆ, ๐Ÿฅš, ๐Ÿฅ›, and ๐Ÿฃ.

๐Ÿง‘โ€๐ŸŒพ had a lovely wife, farmer and master ๐Ÿฃ chef ๐Ÿ‘ฉโ€๐Ÿณ, who made the farm even stronger with her liquidity provider ๐Ÿฃ.

๐Ÿ‘ฉโ€๐Ÿณ ran a โญ โญ ๐Ÿฃ bar according to the Michelin Guide. She was on her way to a โญ โญ โญ ๐Ÿฃ bar.

๐Ÿ‘ฉโ€๐Ÿณ produced ๐Ÿฃ with her bare ๐Ÿ‘.

Suddenly, a blight โ„๏ธ struck the region.

The blight โ„๏ธ began to eat away at their ๐ŸŒพ and threaten๐Ÿ‘ฉโ€๐Ÿณ's dreams of a โญ โญ โญ ๐Ÿฃ bar.

UNI the ๐Ÿฆ„, CRV the ๐Ÿ”, COMP the ๐Ÿฎ, and SUSHI the ๐ŸŸ were not getting proper exercise and nutrition.

The ๐ŸŒˆ, ๐Ÿฅš, ๐Ÿฅ›, and ๐Ÿฃ yields were getting smaller and smaller ๐Ÿ“‰.ย 


๐Ÿง‘โ€๐ŸŒพ and๐Ÿ‘ฉโ€๐Ÿณ's neighbor, Chad the ๐Ÿง™, came to them and asked, "why do you refuse to use the automated weatherproof ๐Ÿšœ?"

๐Ÿง™ exclaimed, "๐Ÿง‘โ€๐ŸŒพ and๐Ÿ‘ฉโ€๐Ÿณ, the ๐Ÿšœ will relieve your cold, tired, and bare ๐Ÿ‘."

If you ask me, the narrator that is, Chad the ๐Ÿง™ was a real Chad, and quite a helpful one at that.ย 

๐Ÿง™ used his automated ๐Ÿšœ to connect with a vast ๐ŸŒ of fellow ๐Ÿง‘โ€๐ŸŒพs.

The vast ๐ŸŒ of fellow ๐Ÿง‘โ€๐ŸŒพs staked their ๐Ÿšœ, ๐ŸŒพ, ๐ŸŒˆ, ๐Ÿฅš, ๐Ÿฅ›, and ๐Ÿฃ, as a community in excess of 1 billion ๐Ÿ’ฐ.

๐Ÿง™ explained "๐Ÿšœ is a true public good."

The ๐Ÿง‘โ€๐ŸŒพ's stakes on the ๐ŸŒ yielded an automated and outsized return of ๐Ÿšœ, ๐ŸŒพ, ๐ŸŒˆ, ๐Ÿฅš, ๐Ÿฅ›, and ๐Ÿฃ.

๐Ÿง™ implored his friends, ๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ, "Please consider using the ๐Ÿšœ."

๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ asked ๐Ÿง™, "That sounds good, ๐Ÿง™, But who is in charge? How can we trust the ๐Ÿšœ and the ๐ŸŒ?!"

๐Ÿง™ explained, "the ๐Ÿง‘โ€๐ŸŒพs and community members are in charge. We govern using our ๐Ÿšœ!"

๐Ÿง™ continued, "The harvesting strategies are codified in ๐Ÿ“ƒs that you can self-assess. And the farmer's almanac, also known as the wiki, is fantastic for getting started and learning about the farming strategies and the community."ย ย 

๐Ÿง™ concluded, "My favorite part is that the community has a profit sharing mechanism. We can stake our earned ๐Ÿšœ and get an auto-compounding
yield in ๐Ÿšœ that is regularly well above standard yields!"

๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ asked, "One last question, who created this thing? Do they have centralized control?"

๐Ÿง™ smiled and said, "The team is BreadforthePeople๐Ÿฅ–, HonestAbe๐ŸŽฉ, and FatSam(TheGaffer). They operate a bit like Satoshi."

๐Ÿง™ continued, "the team writes the ๐Ÿ“ƒs, facilitates and builds out governance mechanisms and ๐Ÿง‘โ€๐ŸŒพ utilities, interacts with the community in public forums such as discord ๐Ÿค–, and are checked and aided by a team of moderators."ย 

๐Ÿง‘โ€๐ŸŒพ and๐Ÿ‘ฉโ€๐Ÿณ began to come around to these new ideas.

"It seems this open and community based farming would be very helpful to us," said ๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ.


๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ started up the ๐Ÿšœ.

๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ read the wiki.

๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ made educated choices as to which of their ๐Ÿšœ, ๐ŸŒพ, ๐ŸŒˆ, ๐Ÿฅš, ๐Ÿฅ›, and ๐Ÿฃย  to stake and what allocations would be best for their unique needs.ย 

As โŒ› passed, ๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ not only returned to the pre-blight โ„๏ธ yields, they began to surpass their expectations.

๐Ÿ‘ฉโ€๐Ÿณ succeeded in her dream of owning a โญ โญ โญ ๐Ÿฃ bar.

All was well ๐ŸŒ‡.


One fine ๐ŸŒ…, the ๐Ÿง‘โ€๐ŸŒพs and the ๐ŸŒ began to realize that someone had capitalized on an exploit in the ๐Ÿ“ƒs and made off with 16 million ๐Ÿ’ฐ.

The arbitrageur ๐Ÿ˜ˆ was undoubtedly a bad actor and a skilled ๐Ÿ“ƒ developer because it takes experienced ๐Ÿ‘ to pull off such a scheme.

The ๐Ÿง‘โ€๐ŸŒพs and the whole community were enraged ๐Ÿ’ข.

The community argued ๐Ÿ—ฏ๏ธ over the best way to make all the ๐Ÿง‘โ€๐ŸŒพs whole again.

๐Ÿง‘โ€๐ŸŒพs began to pull their ๐Ÿšœ, ๐ŸŒพ, ๐ŸŒˆ, ๐Ÿฅš, ๐Ÿฅ›, and ๐Ÿฃ from the ๐ŸŒ.

๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ got burned.๐Ÿ‘ฉโ€๐Ÿณ lost her ๐Ÿฃ bar.

๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ yelled at ๐Ÿง™, "You led us astray! We have lost some ๐Ÿ’ฐ! What do you have to say?"

๐Ÿง™ took a deep breath and said, "๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ, I am terribly sorry. I was trying to do the right thing. And I think that remains true even now."

"How!!!??" yelled ๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ.

๐Ÿง™ replied, "Well, it is unclear as to whether this horrible event was definitively a hack or an exploit in the ๐Ÿ“ƒ. Nonetheless, the core team and the community seem to have found the gifts ๐ŸŽ in this bad event as they are proactively tackling this unfortunate event."

๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ retorted, "And what ๐ŸŽs could anybody be receiving now from this awful situation?!"

๐Ÿง™ replied, "The team and community are learning from this exploit, receiving extensive audits of the ๐Ÿ“ƒs by reputable auditors, and building out a reparations mechanism for the ๐Ÿง‘โ€๐ŸŒพs."

๐Ÿง™ continued, "I believe in the long run this will be something we look back on and say, 'wow, that moment was super unfortunate, but it hardened our security, tested our fortitude, and raised the quality of our ๐Ÿ“ƒs and farming strategies.'"

๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ, rhetorically, replied, "Should we be happy to have gotten burnt? Are we to celebrate a loss?"

๐Ÿง™ said, "Often, true wisdom can only be found in a failure. Do not suffer in the past. Enjoy the fruit of the past and throw away the peel. The core team and community are so transparent and talented, surely the ๐Ÿšœs and ๐ŸŒ will thrive again. We also should not forget about the DAO incident in Ethereum's nascency--they too suffered, learned and became stronger."

๐Ÿง‘โ€๐ŸŒพ and ๐Ÿ‘ฉโ€๐Ÿณ replied, "Perhaps you are right, but today it seems you are wrong. The total staked ๐Ÿšœ, ๐ŸŒพ, ๐ŸŒˆ, ๐Ÿฅš, ๐Ÿฅ›, and ๐Ÿฃ has collectively declined by ~50%. We should have never trusted you, Chad the ๐Ÿง™."

๐Ÿง™ replied, "Fair. I hope to reconvene in the future. Farewell."


2.5 weeks later.........

๐Ÿ‘ฉโ€๐Ÿณ to ๐Ÿง‘โ€๐ŸŒพ, "It's bizarre, but I think our ๐Ÿšœ farms are doing well again. I'm on the ๐Ÿšœ dashboard and based on what I see I think I can reopen my ๐Ÿฃ bar!"

๐Ÿง‘โ€๐ŸŒพ to ๐Ÿ‘ฉโ€๐Ÿณ, "You're right, I cannot believe this! Look at the total value locked! And look at the profit sharingย yield!"

๐Ÿ‘ฉโ€๐Ÿณ to ๐Ÿง‘โ€๐ŸŒพ, "900 million ๐Ÿ’ฐ in Total Value Locked with a profit sharing yield of 276%! TVL looks almost back to pre-๐Ÿ˜ˆ days!"ย 

๐Ÿ‘ฉโ€๐Ÿณ and ๐Ÿง‘โ€๐ŸŒพ in unison, "Let's call Chad the ๐Ÿง™!"ย 


๐Ÿง™๐Ÿ“ž "This is Chad the ๐Ÿง™."

๐Ÿ‘ฉโ€๐Ÿณ and ๐Ÿง‘โ€๐ŸŒพ๐Ÿ“ž "Chad the ๐Ÿง™! Surely you're aware of the good news!"ย 

๐Ÿง™๐Ÿ“ž "Indeed I am. It seems that (strong and healthy (๐Ÿ“ƒs + ๐Ÿง‘โ€๐ŸŒพs + community)) === (strong and healthy ๐Ÿšœ)."

๐Ÿง‘โ€๐ŸŒพ๐Ÿ“ž "You were right about what you said in ACT 1: ๐Ÿšœ was and is a true public good."






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