April 12, 2022: Q2 Yield Farm Strategies π§βπΎ π
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 firstβ¦ wouldnβt 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, thereβs 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, itβs 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.
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?
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, todayβs paid post is an annotation of my recent and seemingly mundane research around portfolio rebalancing. I discuss my thought process, what worked, what didnβt 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!