Earn up to 40% per Day or more Farming Crypto with Stablecoins

Don’t understand how to farm Native Tokens (or are afraid to?) Make a pretty penny prettier by just farming Stablecoins.

Farming Native tokens is kind of an advanced subject. It involves strategies regarding entries and exits, timing and speed of execution.

But what if you have a stack of money, and just want to earn more with it?

Farming stablecoins is something that doesn’t require much advanced knowledge other than using swaps, like a Pancakeswap or Apeswap. It does require some attention to new farms as old ones stop producing.

Stablecoins are crypto tokens that usually mimic the value of the US Dollar, such as USDC or USDT (Tether). This makes them more “stable” as you don’t have to go through price discovery, as with every new token coming on to the market.

I like to use these as the basis of the majority of my farming activities. At any given time I may have 5–10 or more farms harvesting at the same time.

If you pay attention to this world you might have noticed astronomical percentages being paid out.

You might also notice that the high percentage drops precipitously once the farms starts. This is because the high percentage is based on the number of people within a farm or pool. The more people in a farm the lower the percentage rewards given, as it needs to be split amongst every participant.

The following is a glimpse at the stablecoin farms I have going at the moment. Each farm has anywhere between $480 to $1,533 in each. I like to invest $500 to $1,000 in each farm. This chart shows the daily estimated harvest:

All of these are based on stablecoin farm pairs, such as USDC-BUSD on Vulcanswap, or single asset pools such as USDT on Carnageswap. The reason you would want to construct farms only dealing with stablecoins is that you don’t have to deal with Impermanent Loss, or the dollar loss you experience when one or both tokens within a pair drop in price. Stablecoins retain their initial value.

These farms typically pay in their Native token, such as Carnageswap paying the percentage out in their namesake token Carnage. Since they just spun up their new token just for this purpose this allows them to payout according to their tokenomics.

One disadvantage then would be the amount of the reward falling over time, so that even though you are getting a relatively high return percentagewise, because the paid out token has fallen so far down in price it may no longer be worth farming.

Combine this with falling percentages, and it’s time to look for the exit.

By avoiding native pairs, (such as Carnage-Venom in the case of Carnageswap) you do not participate in the high percentage harvests (currently over 173,000% APR), but you also avoid the risk of Impermanent Loss when the token price drops precipitously.

The other disadvantage would be if the farm “rugs” or rug pulls, devs pulling all the liquidity they have provided for the pool start, and selling the native token. This usually makes it difficult to get your stake back, unless you know how.

One way to further guard against a rug pull is to only farm on farms that have been audited with reputable auditors such as rugdoc.io or Certik certified farms.

The process then is to stake stablecoin pairs such as USDT-BUSD, as I have done with Vulcanswap, or use single stablecoins such as USDC on Carnageswap.

I usually don’t use the custom swaps the farms provide, as I can get a better price and more liquidity by using the standard swaps such as Pancakeswap for Binance Smart Chain, or a crosschain swap such as Sushiswap for Polygon and BSC. And since I’m only swapping for stablecoins, and don’t have to get the native tokens (such as Carnage) I don’t have to.

After that, just stake the pair or the singles for the pools, and rake in the harvest!

…well, not quite.

Since the percentages tend to drop over time, you’ll need to remove farms and add others. I look for farms daily, swapping out old farms for new ones based on their percentage rewards.

Farms typically charge 4% for farming, so $1,000 would get a $40 charge for the privilege of farming. After I get this fee back with my harvest, the rest is gravy.

I do not swap out a farm until I at least get the fee back. My rule is to not operate at a loss — ever. Some may want to jump out of a farm if it doesn’t generate enough of a reward, but I like to stay in until at least what I have already paid out is paid back.

So, how do I find new farms? I watch Youtube channels, interact with discord and telegram devoted to defi farming, and look at the Rugdoc Calendar:

https://rugdoc.io/calendar/?swcfpc=1

As well as the Ape O’Clock Defi Farm Calendar:

I create my own list from these sources, read through their docs and select the ones I am interested in.

Frankly, farming stablecoins is on the low-risk end of a high risk activity.

It can still be very rewarding.

Some like the high percentage excitement of farming natives, but honestly that is a tiny percentage of my farming, which I think of as akin to gambling. Many times farming natives is more like throwing good money into a big black hole. Sometimes a farm pops off, and sometimes it simply doesn’t. Farming Stablecoins is just easier, with less heartburn.

You could make an enjoyable meal of just stablecoin farms — I know I do!

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://medium.com/cryptozoa/300-day-for-under-5-000-invested-32b63005efb1?source=rss——-8—————–cryptocurrency