A Year Farming on Celo

Why I wasn’t able to generate an edge by yield farming.

  • A year in review: Up 75% for the year.
  • 75% is bad compared to the crypto market.
  • Quality matters. Farming tokens in projects I believe in.
  • Re-farming of rewards.
  • Exploits and Failures happen.
  • If paying taxes, it quickly gets complicated.
  • Total donation of $3,500 for the year to Father’s Uplift.
  1. I started farming on Binance Smart Chain via Harvest.Finance with $1,000. Fees on Ethereum are prohibitive for farming so that wasn’t an option at this dollar amount.
  2. Things started ok and I gained a few percentage points per week, until a small market crash put me down 24%.
  3. I realised that I didn’t understand the tokens I was farming on Binance Smart Chain and diverted my efforts all over to Celo (in the meantime, adding another $1,000 of funds to my farming), where yields were high and I know the projects better.
Return from a portfolio of 50% cEUR, and 50% split between BTC, ETH and CELO (no rebalancing)
  1. Bridging protocols failing (the Optics risk above).
  2. Stablecoins depegging (perhaps for reasons of insufficient collateral).
  3. Crypto price risk (i.e. crypto prices in general falling).
  4. Smart contract risk of farming protocols (e.g. harvest.finance or Ubeswap).
  5. Impermanent loss (price movement in non-stable liquidity pools).

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