Well guys, I decided to enter and participate in this round of contest and maybe farm some FARM. Suggestive no?
Yes, the problem is that due to high ethereum rates, and those who know me know that I'm not a big fan of this network, I think there are a lot of blood suckers in this, manipulation, especially in some liquidity pools, besides the miners. Those who follow me know that I had problems to exchange some AMPL withdrawals made here in the blog, because I made a transaction in Trust Wallet and after charging fees in the swap my transaction was not made. This is one of the reasons why I prefer CEX, DEX still very uncertain, and this is all very bad, especially when it comes to Ethereum, which is very expensive and as they are new resources there is still a lot to me beta phase.
Besides all this, I always defend greater democratization, and you know that I have talked a lot about networks such as Algorand, that I have been working with this company and I recognize that due to the great partnerships that it has recently achieved, it is a solid company and has great growth potential in relation to Atom, Cardano and Ethereum, because it is a network of high performance, honest and reasonable rates. I wonder why these DeFi companies, which have these liquidity pools do not migrate to networks such as Algorand, would it not be profitable because the rates are not exorbitant as Ethereum? Yes, I say that because it is already possible to trade USDC and USDT through Algorand, because of the lack of will to integrate such services. And that's exactly what I'm going to talk about today, stablecoins, that's my strategy. Let's see it's advance because my strategy is related with stablecoins and not other high APY tokens.
We're lucky there's no YAM on Harvest.Finance
Well, we all know that DeFi has been a hype, and along with that we also have many hyip. I have nothing against it, but let's say I'm always suspicious of high yields, this all doesn't make much sense to me, even more with so many projects that the developers make some pumps and fall out.
So much so that even with exchanges that I do weekly and in some cases daily, I have preference for pairs with stablecoins like BTC/USDC, ALGO/BUSD, ETH/USDC or ALGO/TUSD in cases also ALGO/BNB and BTC/KCS.
I usually give preference to pairs with stablecoins or currencies that I already have followed and have a well consolidated fundamentalist analysis. Generally it is easier to follow this when you deal with centralized project currencies like Binance Coin (BNB) or KuCoin Shares (KCS), although both have recently had great appreciation as well. So it's easier not to lose positions in regular exchanges. And I also prefer to be conservative and not risk too much in projects with extreme volatility like many DeFi. I am also not a fan of spending too much on ETH rates, I prefer to use Binance Smart Chain (BSC) project in these cases.
But, come on, we are talking about Harvest Finance here, and until they use the Algorand high performance network or migrate to BSC, let's talk about my strategy in these cases.
As I mentioned before, I like to maintain some stablecoins, even because in case the market suffers a strong fall on account of the bears, I benefit from this and buy back the assets with the stablecoin reserves. But please be very careful with Tether USDT, we don't know when this bad stablecoin will burst. Because of this I strongly recommend not to farm with USDT, but instead use Circle's USDCoin (USDC), TUSD (True USD), DAI, Terra UST or Binance USD (BUSD). Tether (USDT) never, only to exchange fast in last cases. This does not serve as a dollar value reserve.
Stablecoin APYS are much more modest than the Uniswap pools, but as I said, we must consider many factors, and to be honest I don't feel much security in Uniswap as long as I have problems with the unsuccessful exchanges, where I was only charged ETH without any service performed.
Below are the options:
Considering all this, I hope you make the right choice, just be careful with the high fees of the Ethereum network. Don't be satisfied with it, claim improvements or start migrating to alternative networks, as a suggestion I would say cool projects are coming from Yield Finance in the Algorand network. Stay tuned!
Thanks for oportunitty this contest all Publish and Farm team!