Agriculture and farming are probably the most essential professions and services on Earth, but with Harvest Finance, we aren’t talking about corn, rice, and strawberries, but the farming of digital assets and cryptocurrency.
If you’ve never heard of Harvest Finance and their token, FARM, they are a yield optimizing service on the Ethereum network. The goal is to profit, but in the process you can save a lot of gas through their auto-compounding.
As a FARM token holder, you earn a share of their profit from all other pools.
Taking a look at their site, you will see numerous strategies, but which strategy is right for me?
I have to simultaneously feed and ignore the yield chasing voice in my head. With that, my preferred strategy is the single-asset FARM pool. It auto-compounds if staked on Harvest and absorbs profit from other pools on Harvest Finance. Currently it estimates an approximately 76% APY, but this is subject to fluctuations.
Why this strategy?
To me, simpler is better. There is the age old “KISS” strategy otherwise known as Keep it Simple Stupid! I’ve been down the rabbit hole of complex strategies, and it rarely works out. I've been stupid before and it rarely works out.
Five things come to mind when thinking about which strategy is right for me.
- I am not a whale. Take a look at the gas fees these days. Who can afford to be jumping around, trading, moving in and out of different liquidity pools? Not I! Of course just about every strategy on Harvest should save you gas fees because they do all the work and small harvests along the way. If I harvested and reinvested a few times a day on my own I’d be bankrupt in a week. But to me, even changing strategies every few weeks is expensive. I’d rather just HODL (and auto-compound!) their token, FARM.
- I avoid impermanent loss like the plague. Many of the LPs with higher percentages also have the added risk of impermanent loss. If one token tanks, it hurts! For that reason, I lean toward single asset farms.
- Diversity of income is preferred. Nobody knows which projects will succeed, dominate, or fail. Even though it is just one asset, farming FARM gives me a little bit of exposure to multiple strategies. If the MIC/USDT pool pulls in income, some of that goes to FARM holders. If the ETH pool does well, some of that goes to FARM holders. If X, Y, or Z does well... you get the picture.
- Comparing crypto to agriculture, I started comparing different coins and tokens to different crops. Thinking about the foods that we eat around the world, has it always been the same? No! Diets have changed for millennia and in crypto it seems like each month there is a millennium worth of development. I feel more comfortable putting my money in tractors and ploughs than I do in picking a winner between corn, wheat, rice, or barley.
- Harvest is built around the idea of "Bread for the People". It is easier for me to let them do the work and let them bake some bread for me.
Who is it good for?
I want a simple investment where I don’t get rekt by gas fees. While simple is nice, I am also attracted to FARM’s high double digit (sometimes triple digit!) APY. There are risks involved, but the single asset, non-LP farming strategy makes it better suited for me than some of their other strategies (do your own research of course! It might not fit into your portfolio!)
How to get FARM?
- Earn it as a tipping token here on Publish0x (this is my favorite way)
- Buy it on a DEX like Uniswap
- Farm it with one of their other vaults (DAI, ETH, etc.)
Thank you for reading and thank you to Publish0x for another competition! My FARM strategy might not be for everyone, but it suits my needs to avoid moving in and out of different vaults and saves me gas along the way.
This is not investment advice, so please do your own research and share any thoughts you have in the comments below.