Keep An Eye On CUB DeFi 👀
It's been almost a month since CUB DeFi was launched and it's part of our every day life. For me it's been a nice experience and a profitable one, no regrets so far.
The past few weeks were everything but boring, the price of everything went crazy, starting from BNB to CUB just in a different way. BNB reached its ATH and went from $232 to $414 (10 hours ago). CUB had a very different direction, dropping from its ATH to as low as $1.87 on March 24. Unfortunately I have no idea what was CUB's ATH, because Coinmarketap is showing the price since the moment of listing but that's not the real ATH. I believe it was somewhere around $14 or so.
Well, that is the past, we live in the present and want to see in the future, or at least anticipate it as it's crucial. Being in the right place at the right time with the right plan and resources can make you rich.
A bull run is just around the corner and will change things big time. Depending on what farm you are in, you need a strategy and need to watch the market.
These are the farms with the highest APR at the moment and most likely the most used.
bLEO - BNB LP will be affected for sure. So far BNB going up has benefited the farm as we're getting more bLEO at the moment. I don't know what's going to happen to BNB during the bull run, had a nice evolution already but it can go up more. Everything is possible.
CUB - BNB LP also had a nice evolution as BNB went up and CUB down. I'm not in that pool, so I can't tell anything about what's happening there, but since BNB went up and CUB down, I don't think farmers have reason to complain. The high APR, 356.26% can also count in calculation.
CUB - BUSD LP on the other hand is a totally different story. BUSD is a stable coin, which means BUSD will remain the same, no stress there. The only factor that can determine your gain or loss is CUB, that can go in any possible direction in the upcoming future.
After the big fall, many have anticipated that it will bottom at around $2. Then it started to go up gain, up and down and right now it's at $3.029. The key of this farm is the price of CUB when you enter the pool. If you enter when CUB is at its lowest and from there on CUB goes up, you lose. You'll get less CUB and more BUSD. Many think if CUB is at it's lowest, that's a good thing as you need less BUSD to enter the pool, which is true for that particular time. The problem starts when CUB goes up. So it's better to enter the pool when CUB is up and exit when CUB is the lowest. Easier said than done, right? Tell me about it.
CUB den is the safest, the only stress there is if the APR is dropping, which is possible as the more CUB enters the pool, the less the APR, but compared to what you can get from banks, this is already way better. If you want to take no risk, then den is for you.
As soon as CUB starts to go up I'm moving out of CUB - BUSD LP as at some point it's not going to be profitable for me anymore. bLEO - BNB LP is a big question mark still. If you can foresee what's going to happen in the near future, don't hesitate, let me know in a comment.
If you're new to this and don't know how to monitor your farm and den evolution, here's a post that explains you how to use the How much is my LP worth? tool.
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https://twitter.com/nobordersNB/status/1379884139659288585
Exactly this ... Easier said than done of course, and it depends also on the goal you have here. Is it to make as much CUB as you possibly can? Or is if for the quick gains in dollars? So many people, so many reasons, so many strategies. And which one is the best.
But if you go for the CUBS in the long term, you are definitely right with this strategy.
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You're right, going for CUB is my long term goal and also Leo. The question is how to spin things to avoid permanent losses and maximize profit 🙂
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A way to do so is to exit at the same price as you have entered. This works best with a Staible Coin Combination (CUB/BUSD for example). The best thing about LPs are their high APRs. The rewards are so high that you would like to stay as long as possible in the farms to earn the most. When you pair two Altcoins you have to watch the LP-Token Value as a whole - this works best with DApps like yieldwatch for example.
💎🐾
P.S.: If you want a Farm with the safty of a Den take the USDT/BUDT Farm.
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I don't want to exit at the same price, I want to exit at a lower price.
I guess I'm never going to participate in a farm like USDT/BUDT. Doesn't interest me, see no challenge in that honestly.
I have a plan but I need some time for that to be executed. The market is not ready yet for that.
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Okay, don‘t thought you are doing DeFi to „challenge“ yourself - I do it to increase my portfolio... ;)
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I'm not doing DeFi to „challenge“ myself, I'm here to increase my portfolio. The challenge is to get a higher profit.
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I am currently exploring the cub-busd lp. Made some nice profit of which I have reinvested part in the cub den. Things are shaping up nicely. I am expecting a pump sooner or later.
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First we have to see cub bottom. Then I have to make some adjustments and then I'll be fine.
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Just keep stacking those CUB-BUSD LPs !
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I plan to continue treating this as a long term accumulation opportunity. Might shift around what I have in the Farms a little bit if warranted, but mostly just hold steady and dump the ongoing yields into the CUB Den.
=^..^=
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That's my plan too. Just need to watch out for permanent losses.
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I am really not worrying about the permanent losses, as long as the CUB keeps paying out.
I don't even know how to measure, fiat, cub, LEO, BNB? So many possibilites, I'll just keep yeilding the CUB. - and rolling into the DEN.
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There comes a point where you have to be as APR's are dropping and the value you make in CUB may not cover the value of loss. We have to consider every angle when it comes to risk management.
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This farm/den switching game is too difficult haha
I chose a medium-risk/medium-reward strategy with half in DEN and half in Farms.
That won't bring the optimal return indeed but I'm not good at timing the market ;)
Happy farming !
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I was really wanting to be a savvy investor and maximize my profit. I am learning that HODLing and sticking to the HODL is the best way.
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well staking is a kind of HODL in a way. It’s very hard to guess which one is going to be better between HODL and staking.
But for sure we will all be wealthier with CUB, one way of the other ;)
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I wouldn't say difficult, more like time consuming as you have to watch the market all the time.
You say you're not good at timing the market but who is? No one knows really. This is not an exact science, there are so many influencing factors we don't see coming, we just see the effects.
I'm still grateful to you 😉
Happy farming to you too as the most fun is just about to begin 😂
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Thanks for the link to the 'how to monitor your farm and den evolution' post. I must have missed that one.
I'm in the DEC/BUSD farm which is actually doing better, at least from an APR perspective, than the bLEO/BNB one. I need to work out the figures for when it's worth adding more DEC versus fees to swap half to BUSD etc. Then when I've saved that amount of DEC I will be adding it in.
And . . . I need to work out at what point it makes sense to compound and harvest. Still haven't done the maths yet. 😁
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I suggest you use that tool as it's very good. You get the value of your hodlings in real time and can monitor the evolution, instead of flying blind.
I don't hodl DEC and you're right, it's doing better than bLEO - BNB APR wise but it's also a different pool because DEC is paired with a stable coin, while BNB is not a stable coin. So both the risks and the outcomes are different :)
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I've just spent over 3 hours trying to get my head around that spreadsheet and I now have a headache and am back to thinking this was all a step too far. I've not compounded or harvested anything. 😢
The amount in the DEN is tiny so the main spreadsheet is not that useful as it only goes up to 36 hours. However, someone created another one specifically for small amounts but the results differ wildly.
On the original it says that if I compound at 24 hours I neither gain nor lose. On the one for smaller amounts it says I would lose $2.39. In fact at no point (up to 10 days which is the max it shows) would I make a gain.
With the DEC/BUSD farm the original shows a loss of $0.40 at 24 hours and the small value one shows a loss of $17.84.
Since I don't understand the relationship between the 2 I don't feel confident using either.
I've had enough for today. At some point I'll probably going back to simply trying to work out if the amount I compound or farm is at least 5 times the fee. Chasing optimum returns is more frustrating than it's worth for me. 😂
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Oh God, sorry for the confusion, I didn't mean the compounding spreadsheet. That is most likely not even accurate as Gas fees halved since then and who knows if the formula is updated.
I meant https://howmuchismylp.com/, where you can see how you stand. In your case, if you're in the den, that doesn't need a lot of care as it is what it is. DEC/BUSD is another matter but it depends on the holder.
I didn't mean to confuse you Gillian 😂
!ENGAGE 30
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No problem at all. It's very easily done! 😂
I appreciate you trying to help. 😍
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I wish I could do more but I'm just as a beginner as you 😜
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ENGAGEtokens.Most of my funds are in the CUB/BNB farm as I expect both of them to go up. I might actually move some of it into the bLeo/BNB farm as well, but since it has a lower APR I have not yet done that.
I'm not in the CUB/BUSD farm for exactly the reason you point out. I expect CUB to go up in price a lot when Kingdoms and Staking become available, at which point I would end up with a lot of BUSD and loose my CUB's.
I'm really looking forward to the autocompounding and staking multiplier benefits :)
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Looks like CUB - BNB is a good option. I think I'm going to consider joining soon.
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I see you are thinking too much about Impermamnent loss. But Juicy APRS for liquidity providers covers all the Impermanent loss in medium to long terms... Gonna do a post giving exact numbers. Will tag you.
Cheers...
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I don't really plan to change strategies, just keep stacking LP and put more CUBs in the den. The impermanent loss only matters if you sell, right?
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Yes, but if you enter the pool when CUB is almost at the bottom and then starts to go up and you know it's never going to bottom at that level again, you will never get your invested CUB back. Need to mention this is valid in case you're paired with a stable coin, otherwise the other coin's price counts as well.
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I dont really know what I am doing, but as
long as it keeps spitting out CUBs I am happy!
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