With the launch of @prism_protocol's AMPS vault, the last piece of the gear is finally completed. With that, let me present to you.. my updated yield farming strategy ๐ฅ
If would like to learn more about AMPS, do check it out here!
๐งต(1/14)
If would like to learn more about AMPS, do check it out here!
๐งต(1/14)
1. TLDR: My updated yield farming strategy:
a. $xPRISM - $PRISM LP
b. $pLUNA - $PRISM LP
b. $yLUNA - $PRISM LP
c. $yLUNA staking into Prism Farm -> $PRISM acquired to stake into AMPS vault
If you have forgotten about my initial Prism strategy:
a. $xPRISM - $PRISM LP
b. $pLUNA - $PRISM LP
b. $yLUNA - $PRISM LP
c. $yLUNA staking into Prism Farm -> $PRISM acquired to stake into AMPS vault
If you have forgotten about my initial Prism strategy:
2. The objective of my strategy still remains the same: to acquire as much $PRISM as possible. The main differences from my previous strategy are:
b. inclusion of $yLUNA-$PRISM LP
c. utilizing AMPS
Why were this changes implemented? Lets talk about AMPS first.
b. inclusion of $yLUNA-$PRISM LP
c. utilizing AMPS
Why were this changes implemented? Lets talk about AMPS first.
3. Utilizing AMPS is a no brainer. It will supercharge the amount of $PRISM I can earn from the PRISM Farm which goes in line with my first objective. AMPS also allow $xPRISM to be put to work, supplementing an additional layer of utility.
4. Why $yLUNA - $PRISM LP now? Am I a $yLUNA maxi now? Not really. It has mainly got to do with how I believe $pLUNA and $yLUNA will behave, which I've shared about here:
5. The TLDR for my belief is that the value of $pLUNA and $yLUNA will always swing to and fro over time, like a cycle. While the utilities of $pLUNA and $yLUNA is important, $pLUNA and $yLUNA at their very core are Derivatives.
6. In the TradFi Derivatives scene, the drivers of price action are mainly Market Narratives and Whales. While Terra isnt TradFi, I will not take the risk to rule out Whales from pumping either $pLUNA or $yLUNA so hard that the price swings significantly, changing the narrative.
7. Which is why, the rationale of my strategy is to profit from the speculation and volatility between $pLUNA and $yLUNA which I believe is one of the main roles of @prism_protocol. $xPRISM fits the bill, so does the $pLUNA and $yLUNA liquidity pools.
9. If that's the case, why don't I just buy $pLUNA and await the flippening?
Unfortunately, I hold a day job and spend about 10 hours away from my computer. The chance that I do not perform the trade at the right time is extremely high.
Unfortunately, I hold a day job and spend about 10 hours away from my computer. The chance that I do not perform the trade at the right time is extremely high.
10. Hodling onto $xPRISM and the $yLUNA/$pLUNA LPs will allow me to profit from the swings passively. Most of you witnessed the insane transaction volume that happened on the first few days of Refraction. As $LUNA moons and with evolving utilities around $pLUNA and $yLUNA,
10.1 I believe that the swings will come, sooner or later.
11. If you are someone who is unable to constantly monitor the markets and/or prefers to make sustainable long term profits idly, then this strategy may be ideal for you!
12. Thank you very much for reading through the entire thread! Please feel free to share your thoughts and criticisms as well!
Shoutout to @helloiamzac for his input and also huge thanks to all those in @prism_protocol's Discord who have contributed to my learning!
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