The crypto market has been moving and shaking a lot recently with several cryptos making huge runs up then retreating before as of this morning moving forward once more. Now as someone who has the majority of their portfolio currently in DAI this has been a huge huge plus for me! Why might you wonder? Well, it is all thanks to Harvest Finance that I get to reap the rewards of doing nothing!
To start out I am a huge fan of Harvest and have used them for about 10 months now. When there was a flash loan attack that occurred it spurred the development and implementation of Grain as the developers and community doubled down to make this yield farm work and work it has! The fact that they did not cut and run amazed me and really encouraged me to believe in the platform as it was not a rug pull operation! Could one day this all fall apart? Yes, it could and this is why I encourage everyone to do their own research and not just blindly follow someone because something worked for them!
With the crypto market having huge run-ups and retreats people are banking on the volatility and are moving in and out of stablecoins to lock in gains or prevent further losses. Certain liquidity pools or LPs are able to really benefit from this action as people utilize said pools and those who deposited liquidity rake in the fees! This is why if you have watched the Uniswap V3 pools the estimated Uniswap V3 trading fees APY has ballooned to over 50% with the pools that are paired stablecoin-ETH the ones that are stablecoins against each other or involving BTC has not received the same interests and boost as the stablecoin-ETH pairings.
Now it is not just the LP pools that are up as the stand-alone DAI pool has also sharply risen with increased interest drive on Compound Finance and IDLE. DAI's APY had started to annoy me since it was falling down into the 5% range and well even though that is way better than any bank with crypto I have come to expect much much more from my idling assets. This volatility has sent the APY to roughly 6.65%. With FARM accounting for roughly 0.60 of the 6.65% that means my money or DAI is growing again at 6% which is something I am very pleased about. This boost gives me a nice peace of mind as I enter the last couple of weeks of this internship and try again to pivot to landing a full-time staffing position on The Hill.