​​Opportunity Cost Of Food

Here is to another long post that will never see light as a newsletter, because farming takes away my sleep and brains... 🥃

Imagine you go out to a steak bar 🥩 You like t-bone, rib-eye, tomahawk - and would like to eat them all. But your asset, meaning your stomach, has limited capacity. You need to decide what will be the most enjoyable to you today, and choose that. With meat, you just take whatever you feel like. With investments, you price in risk + APY + other factors. You need to also understand the timeframe of your investment because that will largely influence if the gas costs are worth it, if there is a better option, and which one has the best balance of lambo + peace of mind.

The Farm War 👨‍🌾

Sushi launched. Then Kimchi went live. Right after, Harvest. Also Yuno launched on the sidelines. Based pool still ongoing, there is some YAM, and so on. You literally see 20 dashboards open and can't figure out what to put your money in. Remember, gas costs for wrapping and staking are probably around 200 USD one-way now!

1️⃣ Audits: Sushi has CZ, Sam's millions in it, devs went through it... seems "ok" before LP migration. Although they all have permissions rekt in some places, devs can sometimes mint more tokens (at least not within the hours when the timelock goes up) and dump into your IL pool with the main asset... It's incredibly unsafe ❗️ Yet we all dump 6 figs into this. Smh. I prefer to usually give some hours (a day) so that TVL moves in and some smart community devs check the stuff. Better to miss out on some % than to lose your stack.

2️⃣ APY and market depth: it largely depends on utilization ratio, as the more capital joins - the lower the APY goes. Market depth also determines how real the APY is. If a few people would cause the price to go to 0, there is no point to join usually. For example, sushi has CZ's retail supporting the buy side thus the high APY. Other coins are more vaporware and their depth is not as good.

So this is how I justified sushi for myself. But if I didn't chicken, I would have made x5 more in Kimchi. However, if you jump into every second highest APY coin, you might end up doing too much micromanagement and not even making back your gas costs - or rushing too much and getting rekt. If your positions in farming are 500K and above, jumping around is more justified.

Verify URLs: https://app.sushiswap.org/; https://harvest.finance/; https://kimchifinance.firebaseapp.com/; etc. Not endorsing this in any way sers. Sun is also launching his SUN on Tron... Big LOL, never thought I'd cite his shit here, but you will be degening anyway, so here it is - to save you time: https://twitter.com/justinsuntron/status/1300449573274443776

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