DeFi - Week 6 - Over 40% On Stablecoins!

By Cryptoft | My DeFi Journey | 24 Apr 2022


6 weeks have passed since I started this experiment and so far, well I am down and have decided to change tactics.

I want to keep my high risk yield farming going on Fantom, but I have decided enough is enough on the CUB-BNB liquidity pool and am cashing it in today. Time to keep some of my DeFi portfolio lower risk.

I was reading through some posts today on Leofinance and I came across the Polycub farm for the PHBD-USDC liquidity pair.

The current APR for this farm is 42.21% and both of these coins are stablecoins. This is an amazing return with a much lower chance of impermanent loss although there is of course the risk of one of the stablecoins losing its peg.

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HBD is the stablecoin for the Hive chain and you can earn 20% on it on the Hive network which is a very decent return for a stablecoin. Although HBD has been around a long time it has never really seen major adoption. With the recent increase in interest rates to 20% this could well change.

PHBD is HBD on the Polygon chain and backed by HBD.

I do have some HBD in savings in my Hive wallet which I will leave there, but I have decided today to cash in my CUB-BNB liquidity, stake the CUB directly in the CUB kingdon and move the BNB to the POLYGON chain and convert to PHBD and USDC and join the above farm.

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I took out the equivalent of 0.515 BNB so I have lost 0.135 BNB since I started in this pool from impermanent loss, I have made some of it back in POLYCUB from the airdrop but not enough to cover the loss.

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This weeks POLYCUB from the airdrop I have again claimed and added to the xPOLYCUB farm.

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My funds arrived on the Polygon chain and I have split it between PHBD and USDC, added it to the liquidity pool on Sushi and then deposited it into the farm on Polycub. I have deposited $103 worth of LP tokens.

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Hopefully I can start making gains now instead of losses.

 

My high risk farms on Yieldwolf are having mixed results. I made some good gains on some farms and lost on others as the token crashed and I did not get out in time. I still don't have a lot at risk here, I am currently in 3 farms, I only have 20 FTM at risk in each farm.

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This is my current situation and the farms I am currently in on Yieldwolf. My portfolio here is up $13 since i started 10 days ago so I am actually gaining here. This is high maintenance though, I have to watch TVLs and prices and judge when to get out. Again I am willing to lose all these funds and I am very aware I am in some very risky places. Don't be fooled by the high APYs, a lot of these tokens nosedive and you might not always get back what you put in due to this drop in price.

Remember this is just my experiences and none of this is financial advice. If you want to enter the DeFi space do your own research.

 

As I cashed out my CUB-BNB position I can pretty much work out my losses to date.

BNB I have lost 0.135 which is $54.22 at todays prices

MATIC I lost 1 which is $1.35 at todays prices

I have gained 1.856 xPOLYCUB which is $10.41 at todays prices

I have gained $13 on Yieldwolf

My losses in 6 weeks are $32.16

 

DeFi is not the easy money printing machine it is made out to be. I will persevere and see if I can recover from this.

Tune in next week for my next update.

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