April 12, 2022: Q2 Yield Farm Strategies 🧑‍🌾 🚜

Notes on recent portfolio rebalancing + TriCrypto Deep Dive

From the early days of this newsletter, some of the best received posts were those where I just described the seemingly mundane transactions I made. I never understood why at first… wouldn’t people care much more about whale moves and insider trades? I have smol bags and smaller alfafa.

The popularity makes more sense if you posit that for every one person in the pool, there’s maybe 10 to 100 sitting on the sidelines eyeing the waters and afraid to jump in. I forget that despite the crazy amount of activity on ETH, it’s still very few people who take the plunge. Those who do actually play on-chain gain a sort of intuitive understanding that feels quite pedestrian but is actually quite rare.

𝕯𝖆𝖓𝖌𝖊𝖗 @safetyth1rd

hiring tip - if you're hiring an analyst for defi - they have to be an active degen/on chain trader this is non negotiable

DeFi is rightfully considered risky, so easier to live vicariously through somebody. Hence why candid stories from non-whales are valuable in this sense, so people looking to tiptoe in can understand how plankton navigate the choppy waters.

People like to hear about strategies, especially as they constantly change in this fast evolving space. Wen Twitch but for gripto traders?

TzTok-Chad (💎, 💎) @tztokchad

Have 6 figs and want to outperform inflation with less risk? 70% in stables farming - stargate, convex etc. (15-20% apy) 20% in a triple digit (150%) apy pool2 ($dpx/weth, $rdpx/weth, $jpeg/weth) 10% in something like glp for 50% apy Overall apy should be 40-50% with min risk

So I absolutely encourage everybody to study various strategies like this one and do loads of research. And of course, talk to your registered financial advisor.

On a completely unrelated note, have you ever realized that with some subjects in life, you can learn a lot more by doing than by reading? Sometimes you have to just get dirty, be willing to make mistakes, and completely immerse yourself before you can learn things? This is an irrelevant and completely unrelated aside, certainly not financial advice.

At any rate, today’s paid post is an annotation of my recent and seemingly mundane research around portfolio rebalancing. I discuss my thought process, what worked, what didn’t work. I provide an in-depth quantitative analysis of the Curve TriCrypto pool, as well as a higher level review of which yield sources I considered. Hope this informs your strategy!