Big Brain Yield Farming Strategy
Big Brain Yield Farming Strategy

Big Brain Yield Farming Strategy

By AlucardLife | cryptoinvesting | 23 Apr 2021

I've mentioned this strategy before, but it deserves another mention. Why? Because it works when the market goes bearish, everything is red, and emotions are running high. During this latest Biden Bonk, crypto and the stock market took an Olympic dive into the sewers, with an encore performance sure to come because that old piece of shit is a fucking idiot fuckinsonisadrugaddictbecausepunishmentfromGod I did NOT just write that holy shit.

Quick aside: There's a trend of the government holding your money going on right now. I'm looking on Yahoo Finance and seeing two interesting headlines: One, Biden taking money from rich folks; and two, IRS taking money from poor folks (because poor folks are the only ones who really pay taxes).

US government stealing money from rich and poor

Anyway, I digress.

As I describe here, yield farming is a beautiful way to wait out market dumps. It's like you get paid to wait. I talked over a lot of strategies in that article. Here I want to focus on one, because it's the one I will be using if bitcoin drops any more than it has ($49.5k).

This strategy lets you maintain leverage in the markets without losing money as you migrate strategies. Don't be confused by this. It's not that difficult.

When you combine tokens to create an LP token, you are really creating a new entity. I know that you've been taught to focus on impermanent loss when you do LPs. I'm telling you there's a better way to think of them in a bull market, especially now that devs are getting smart and creating utility for the LP tokens themselves, not just the assets used to create them.

When you build LPs or take them apart, you incur fees. This is bad. If you take them apart while the market is tanking, then you make the impermanent loss you suffer permanent. Unfortunately, you may have to take them apart to sell when markets crash — unless you set yourself up like what I'm describing below.

The ForTube bank now lets you deposit the FOR-BUSD LP token directly as collateral (actually, the vFOR-BUSD token; we'll get to the slight difference). Guess who else gives high APY for the FOR-BUSD LP token? That's right — Pancake.

Because these two platforms both have utility for the LP token, I now put FOR and BUSD together with no intention of taking them apart until this bull run is over. I no longer have to separate these two assets for them to have value. If the market is going ok, I'm pooling in Pancake for triple-digit APY. When the market tanks, I can move that LP over to ForTube without splitting it up to help shore up my collateralization rate.

By the way, you earn interest on the LP token while it's in ForTube as well. So you might even come out ahead in a Biden bear market.

Moving the LP token where it's needed most regardless of market forces allows me to STAY LEVERAGED in the market, which means I beat the market by definition every second of every day. It's also much harder to wipe me out, especially since I'm watching this bitch 24/7 until I get that fuck you money.

[Sidenote: You may see that Cream offers LP tokens as collateral as well, but be careful. The token can be added to the list without actually offering any utility as collateral, because Cream requires a vote on this for every LP. And their votes can be slow. When you actually put the token in, make sure that the "Borrow Limit Used" percentage actually goes down. If not, then the token hasn't been voted on yet. Join the Cream Telegram and scream at the mods to speed up voting.]

The procedure on For is a two-step thing. First, you need to insert your FOR-BUSD LP into the FOR pool. You get vFOR-BUSD. You then deposit that into the lending/collateral part of the platform. Make sure you're doing it right. I'm not a handholder like that, so join the Telegram if you have trouble doing that.

This doesn't mean ForTube is the end all be all of banks. They have serious shortcomings, and if you want to use them, you should be an active part of their Telegram group. But the strategy is solid, I believe. Look for other platform overlaps to give yourself a better chance of victory in these markets. And keep in mind that many strategies that work in bull markets don't work in any other market.


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Making Money in Crypto Part 1
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