Hello everyone! Another topic around yield farms and this time I'm going to be more specific and talk about Fantom yield farms and my latest experience with it.
I've noticed lately that more and more yield farms are being on Fantom more than other networks like avalanche or BSC, and since I'm always interested with farms I decided to start looking at those Fantom farms and see what's the most special things about them that makes the TVL in many of them over 5 million!
Photo by Visual Stories || Micheile on Unsplash
It looks like that people choose to invest in Fantom farms other than others due to very low transaction fees which is something really amazing, also I noticed that big farms that has millions in their TVL has 2 or 3 tokens that are used in farms or rewarded in farms. So you stake one native and something else like (usdc or FTM) in LP and get another which is something I personally haven't seen before in farms of other networks. But in my opinion, the most important reason is the price stability. Of course it's not 100% stable maybe not even 90% but it's overall change doesn't occur suddenly as many other farms which is something due to high market cap too, also the price isn't always falling and that's the amazing part.
The price of native token in yield farms always tend to keep going down until it's almost worth nothing, but as I saw developers are trying various ways such as APR reset where they have the chance to get deposit fees again and allow them to re-buy and burn more of the token to keep its price more stable, yet I guess some developers in Fantom have found out better ways since the price there is greatly more stable in more farms than I usually see.
I decided yesterday to invest in one of those farms called Vive La Bouje, I invested when the price was 3.76$, I found that price to be in range and there would be a greater chance of price increase in the upcoming few hours. My strategy is based on investing by the time I wake up, and then taking my profit and leave after 12 hours. Now that might seem a little bad strategy as someone might say "Why wouldn't you just keep them there while you are sleeping and profit more?" Well that might happen but I always love to take smaller risks, sometimes it happen the price changes through the night and by that time I wouldn't have a chance to do anything which will lead to a loss, and to be honest I already have a bad experience in that.
I got some great profits from that investment, but luckily, I reached my investment target before reaching 12 hours of the day, I could make 11% profit form the capital I put there which is something really amazing to make in like 3 hours time.
The world of yield farming is really great and with various strategies, you may make a lot of money but it requires patience and choosing the right strategy that fits what you are looking for. And always look for the great chances and never invest randomly so you will always be profitable.
Thanks for reading.
