I saw a vid showing how to do yield farming and it seems to be working out ok

I did a small test run on UNISWAP. Everyone on the sub seems to be acting like it’s super hard to find decent returns. The guy in the vid told what all to do. Use correlated coins to pair, find high volume of trades vs. total value locked in the pool.

I just happened to have some LINK (60 LINK I used) and ETH (.22 ETH or thereabouts) sitting around and figured I’d do a test for a month or so (I’m 1 week in).

So far costs are: 10 bucks to move everything from coinbase pro to my metamask wallet, 10 bucks to get into the pool, 3 bucks to claim fees if I want to (low gas cost times only, else higher) and near negligible impermanent loss.

And I have 15 bucks fees to collect.

My assets are currently:

67.06 LINK

**0.1857** eth

for 845.66 dollars total value according to UNISWAP’s viewer

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Seems like the impermanent loss if I cashed out today is basically a couple bucks or less:

375.80 (1708.2 eth cost x .22 ETH at time I entered pool) + 468 (7.8 LINK cost x 60 LINK) = 843 dollarsish I entered with last saturday morning 2AM EST.

7.77×67.06 (for link value now) = 521.06 + (1736.5 eth cost x .1857 ETH) = 322.47 for a total value around 843.52 (calculated by me, slightly different than UNISWAPS value shown)

Compared to the 845.66 (or 843.52 calculated by me) dollars total value I have sitting right now I don’t think can be that much impermanent loss. The calculator shows basically 0 impermanent loss just based on the fluctuation over the week (ETH up 1% and LINK down -.07%). I seem to have hit on a good time for low divergence, but still.

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So total, neglecting the fee to put money into my wallet from coinbase, it’s 10 dollars total to get into the pool, and then 3 bucks to claim the fees if I want to. Maybe a couple dollars impermanent loss over the week. Call that break even at 15 dollars, and from here on out it seems to be only impermanent loss and fees to withdraw my collected fees as “profit” (tho need to cover the amount of transferring to metamask).

Am I wrong, or does this not seem like a fairly decent making of dollars for the week? Do you guys think LINK/ETH will diverge so far that the impermanent loss eats all eventually?

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3 thoughts on “I saw a vid showing how to do yield farming and it seems to be working out ok”

  1. Do your farming on a chain like BSC or cronos is my choice. Equally as safe with virtually no fees AND most importantly you have a fiat off and on ramp built in with the exchange so you never need to go cross chain or pay bridge fees. I’m on VVS on cronos and MMF

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  2. >I just happened to have some LINK (60 LINK I used) and ETH (.22 ETH or thereabouts) sitting around

    The challenge is when you’re not holding anyway like you were here. You are exposed to market risks and hedging isn’t straightforward.

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