There is a reason everyone in the crypto realm tells you to do your own research and Lift Kitchen or LIFT DAO is a prime example of this! In my previous posts I had written about how their APY on Harvest was above 2,000% or 3,000%+ and when it first launched this was the case. Also when the Uniswap V3 farms launched it went back up above 1,000% so when I saw it was up above 3,000% and at the same time saw how the amount of assets within the farm had also decreased it was easy to explain what was going on.
Should I have done more research? Probably but by the time this was all happening the inital $10 I had put into the LP on Sushiswap was worth $3 so I figured I would just let it ride. It was also super late on the East Coast and I had to get up for work this morning so I needed what little I could get. An important thing about this farm was that it did not increase your balance in said tokens rather it paid farmers 100% in iFARM which I am a huge fan of.
This morning when I woke up and saw that it was at 9,000% I was pretty suspicious as the value in the farm had also fallen to a measly 15,000 by the time I got to work and tried to check in I saw well it was at over 10,000%+ so that means either the LP closed or something else had happened. What I ended up finding out though from their discord was not what I had anticipated. I am still trying to sort though it all since it is a ton of detail and is pretty dense when you read but I will give it my best shot.
What had happened was that with the set up they had they were bleeding assets from the LP. The LIFT token that you where rewarded with was pegged by them and between market forces and just to many LIFT tokens being released the project was going to collapse on itself. What I found interesting was that they did make this public and even put it up to a vote to just let the project bleed out over the next 30 days if people wanted. In the meantime they have let the price of LIFT collapse until the voting is done and a direction is chosen.
It does appear that the creators of the project do want to stick around and try to relaunch it. They are giving the view that they are trying to do the best they can asset wise for the people that where tied up for 120 days at genisis. While they will not be made whole it does seem a pretty solid attempt is being undertaken to get them at least halfway there. With this in mind it does not seem or give off the appearance of a rug pull rather a series of mistakes and bad luck. I am pretty sure based off of what I have read that if the bull market had continued they would have been covered but with the market being Bearish and the amount of LIFT tokens increasing the pegging aspect of the platform could not be sustained.
Lift Kitchen also had not yet really gotten to far along with the project that they were going to fund. While everything was moving along in the voting to fund or not side the investments had not been made and so there was no payout yet. Even in a Bear market I would assume that if there investments had been paying out this would have prevented the collapse but again this was not the case. It ended up being a overpromised and underdelivered project. While I personally liked and still do like the idea of it the project probably needed to have some investments under rap before launching the LP which resulted in assets being drained out of the DAO before it could actually do anything.
As I am writing this there is a ton of back and forth on the Discord channel about what should be done and how it should or will be done. All in all I did earn 0.02 iFARM from this which is pretty good with only having staked 0.001996 LFBTC-LIFT. At the iFARM I can harvest and let it continue to compound and grow which was one of the big reasons why I got into this farm in the first place.
