Let’s Tackle Decay
After my last article on the Animal Farm Drip Network, I had quite a few messages asking me if I could cover the decay aspect of Plants and LP a little bit more. So In this article, I shall delve a little more into that and hope to make things a little clearer for you with the whole decay subject and how it works.
I’m Planting But I ain’t Growing LP
This is by far the biggest complaint with players in the animal farm drip network. They plant their gardens daily and in some cases hourly and yet still their $$$ value and LP production goes down. What gives? The crux of the animal farm garden smart contract is that decay is controlled by
Steady Interest gained rate (+3.3%)
Variable decay rate influenced by (Plants Bought/Plants Sold)
Forex black magic which I am still trying to figure out!
You can see this here on Dune.
Look at my daily LP production and how long I have been trying to get it to 28 daily LP. Bear in mind that with this wallet I ONLY compound daily and sometimes I also DCA in to jump my LP production up in steps. You can see one on Sept 5th and a small one on Sept 16th and then another 100 BUSD on the 23rd. However, look how I have struggled to get to 28LP and hold it (even with DCA).
You can see it more clearly here in my excel sheet. I have been trying now for 12 days to get and hold 28 daily LP. I did manage it and held it for 2 days and then it dropped back with some steady drops. I’m holding my own in the 27s but can’t make the jump.
The left LP column is before planting and the right after planting. You can clearly see how much LP I lose to decay each time I plant.
This correlates with our wallet’s daily LP positivity (How much we are above or below +3.3% interest.
As you can see here I/we have multiple days in September where I/we are below -3.3% Decay with some days we are touching -4%. We can see this in more detail if I put in the figures and the dates for September. So far for this month, we have
- 16 days of positive growth (not much)
- 12 days of negative decay over — 3.3%
You can imagine that if you are claiming a lot your wallet LP is going to suffer. The trick here of course is to compound more than you claim but then you knew that right? Even on positive days, we do not gain much in terms of LP. The best day so far for September is a -2.42 day (forget the last day because it has not finished and will be larger than -1.89). So,
+3.3–2.42 = +0.88% of LP production growth that day.
Plants Sold in Animal Farm Drip Network
Now let’s look at plant sold figures and compare.
Look at it later in September. Although there have been some good days for plant buying, selling activity from the 20th onwards has seen a sharp rise and been very high and it is this selling activity that stimulates the contract to drop your LP gain which is where we see those -4% and above LP decay days.
Now it does not take a rocket scientist to tell you that if your wallet gains +3.3% per day and the decay is running at -4% or above no matter what you do your wallet IS going to lose LP production. Unless you DCA in on those days of heavy decay to jump up your LP which I do sometimes.
You mitigate this decay damage by ONLY planting/compounding on bad days or even bad weeks like we are having. If you do not do this your wallet will suffer even more LP loss! Simply put you must compound more than you claim by quite a margin.
Of course, all the players that are doing the selling of plants here are the ones that are dopping the LP production over the -3.3% range for ALL involved in the garden. You wanted community LOL :).
Not that I’m not dissing those players. We all have our own strategies to play here and it’s the same for the DRIP price to be frank. We all want to take profits on occasion right? I’m just trying to explain why there is decay and how it functions so that YOU can adjust your personal strategy so your wallet does not suffer quite so much on heavy decay days/weeks.
Happy Gardening…
Joining Animal Farm DRIP Network
If you would like to get involved in the DRIP network please read my articles on DRIP here and use the buddy link below to join up.
My DRIP Buddy Link
drip.community/faucet?buddy=0x1511093a940a12F6593cFb886E7ac4ea95AdF5AB Or enter the following into the Get a Buddy box: 0x1511093a940a12F6593cFb886E7ac4ea95AdF5AB
My Animal Farm Garden Buddy Link
If you want to join the Animal Farm Drip Network Garden you can use my referral link which is this
https://theanimal.farm/referrals/0x1511093a940a12F6593cFb886E7ac4ea95AdF5AB
I am NOT a financial advisor. Nothing in this article is to be construed as investment advice. You MUST DYOR (Do Your Own Research) Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information. The article may contain affiliate links. Thank you for taking the time to read my article If you wish you can subscribe. My essays and guides are designed to help you to navigate the often confusing world that is Crypto.
Mark@AltT
Originally published at https://alttokenomics.com on September 29, 2022.
