Now that the end of the year is approaching I figured it was a great time to really look over how my first full year in DeFi had gone. There were plenty of lessons learned along the way and I did waste more ETH on gas than I care to look at but some of the plays I made have paid off really well. Almost all of my DeFi plays were on the Harvest platform but I did use Compound some as well.
On Compound I spent way more on gas than I ever earned with lending DAI and USDC and I wasn't a fan of how Compound was not a compoundable coin like iFARM is on Harvest so in March I made the switch to Harvest for my stablecoin lending. Compound Finance was where I learned how DeFi functioned so the cost associated with the effort was something that really was worth the expense. The money I really made came from Harvest anyway.
While I tripled my initial stablecoin investment over the course of the year from $1000 USD in DAI to $3000 by the end the actual amount of DAI I had deposited was lower than that due to DAI price fluctuations. Since I was not sure when all of the transitions were done or really how much the APY was at that time I decided to just look at the final year amount and apply it to the whole year even though that would lesson was the yield really was.
As it currently stands I have 3234 DAI on Harvest up from the 2994 DAI I lent over the year meaning I have made 240 DAI! That is before the FARM earned is taken into account and that 240 DAI means in DAI alone I made over or over 8% gains! Then looking at the FARM that I have earned that works out to roughly 0.25 FARM. To make things easy again pricing FARM at $100 a coin (currently it is at $96) would mean that I earned an additional $25 earned for a total of $265 made on a $2994 investment. This pushes the total APY to 8.85% which is a ton better than the current high yield saving APY offered by banks!
Now, this is a low-end estimate for the whole year but still shows the incredible benefits of DeFi and the Harvest platform in particular! Now that the money is sitting I cannot wait to see how it goes with no cost for a whole year next year! That is where true value is really unlocked and the big benefits will emerge! Plus putting the FARM into the auto-compounding iFARM pool the iFARM itself will grow as well!
Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_
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