Greetings Lefties, As we've shared in our previous Substack, we believe yield farming to be the superior way of participating in DeFi. In TardFi, Liquidity Providing (LP) is done by market makers like Flow Traders and Virtu with the crypto equivalents being Wintermute and B2C2. What market makers do is ensure you will be able to trade at market prices while earning a profit with the bid-ask spread. With the innovation of the Automated Market Maker (AMM), it lowers barriers to entry and you can be a market maker too. Liquidity Providing in crypto is essentially allowing an individual (you) to act as a market maker enabling trades on automated market maker platforms like Sushiswap and Uniswap. By doing so, you get a cut of the fees and rewards as well as rewards from the protocol you are LPing for.
Question for LP'ing yield farmers: Yield Yak (on Avalanche) pools LP tokens to reduce the per-user gas fees incurred by claiming and compounding rewards. This looks like a good idea, because unless the amount of liquidity provided is huge, I think daily compounding would be cost prohibitive. Do you know if this is a legit/trustworthy platform? Thanks.
Great overview. Yes I am v concerned about IL but your calc makes it less scary actually... Anyway have you all figured out payment via Crypto? Thanks.
wow great write up
answered many qs
looking forward to degen article
Question for LP'ing yield farmers: Yield Yak (on Avalanche) pools LP tokens to reduce the per-user gas fees incurred by claiming and compounding rewards. This looks like a good idea, because unless the amount of liquidity provided is huge, I think daily compounding would be cost prohibitive. Do you know if this is a legit/trustworthy platform? Thanks.
Great overview. Yes I am v concerned about IL but your calc makes it less scary actually... Anyway have you all figured out payment via Crypto? Thanks.