COM’s First Partnership with xETH- A Huge Success
First of all, congrats to COM holders who participated in xETH’s round 1 presale. We were able to secure ~150 ETH of allocation that was 10x oversubscribed to the public.
Also, congrats to all tier members (everyone who held over 500+ COM), who received 5% of the xETH supply via airdrop, especially platinum members received roughly 200 xETH each, now worth over 8 ETH.
What’s next for COM?
Last week, we surveyed the community about what type of partnership COM should secure next. The options were a long-term “value” project versus a degen high APY yield-farming project.
The community decided to go with whatever opportunity came first, so we are excited to collaborate with Pad Thai, an experimental yield-farming project that listed COM as one of it’s high-yield pairs.
Here is a countdown for when Pad Thai goes live.
While this is not an official partnership since there is no presale or airdrop, COM holders have a big advantage because:
- We know about this opportunity before most other people
- We already own one of the main farming pairs
- We’ll most likely face less competition in the COM pool vs. the other pools
As with most tokens, the earlier you are, the more of an advantage you have. As of right now, the Pad Thai discord has less than 50 people in their Discord so you’re still early!
Pad Thai Farming Strategies
The following is a short farming guide written by community member TW. He shares some insights he’s gained from his recent yield farming wins:
From community degen-farmer TW:
Before I dive into my strategy, I wanna go over the risk with yield farming. It’s not for everyone and if you don’t have any experience, I recommend you sit out of this one. Maybe play around a bit on Sushiswap with small stakes to get comfortable with providing liquidity and staking tokens.
Also, due to the amount of transactions and the gas they will require, I don’t think this is worth doing unless you’re going to be farming with 10+ ETH of tokens.
Risk #1: Unaudited code
The main risk to yield farming new projects are unknown functions in the contract (either malicious or accidental). However, this risk is mitigated if it’s forked from an audited project like Sushiswap with minimal modifications.
Although Pad Thai’s code is unaudited, I’ve personally tested it and found everything works as it should. Also, I know the team personally and can confirm they don’t have anything malicious in the code.
Risk 2: Impermanent Loss (PADTHAI token losing value)
If you’re not familiar with the idea of impermanent loss, read this article Basically if you are farming with the COM/PADTHAI liquidity pool token, you risk losing your COM if PADTHAI drops in value.
The same goes if you farm with another pair such as LINK-ETH. If LINK drops in value, then you end up with more LINK and less ETH. You can use this app to calculate impermanent loss.
The rule of thumb is, the more volatile the pair, the higher the risk for impermanent loss. So the stablecoin pairs (like USDT/ETH) will be the least riskiest while the base pairs (COM/PADTHAI or ETH/PADTHAI) are the most riskiest.
Stablecoin pairs will typically have the least yield because there are usually more people in those pools, so you get less rewards. The base pairs will generally have higher yields because there are less total value locked in those pools, plus those pools typically get a rewards multiplier to incentivize more people to farm them (in Pad Thai’s case it’s 2x rewards).
TW’s Pad Thai Farming Strategy
While there are dozens of farming strategies, I’m going to share one that I feel is a good balance between high-yield and risk mitigation. I used this strategy to make about 20 ETH farming Sushiswap. I used a similar strategy to make about 30 ETH on Kimchi.
- First decide what pair you’re going to farm on Pad Thai. Since there is no premine, you need to farm Pad Thai first. You can’t buy it right off the bat. Since, the stablecoin pairs have the least risk, you can start with these early on while there are still relatively few others in the same pool. Once you provide liquidity on Uniswap with an approved pair, you’ll automatically receive UNI-V2 pool tokens, which you’ll stake to farm Pad Thai.
- Once farming goes live, stake your LP tokens right away. Use Eth Gas Station to determine what the recommended gas price the fastest approval time (the “trader” option). I usually add 50-100 to what the current trader price is. Sometimes, that can be up to 500–600 gwei. It’s important your transactions process quickly since you don’t want pending transactions slowing you down.
- Once you start generating PADTHAI tokens, start adding liquidity to the COM/PADTHAI or ETH/PADTHAI pool and start farming that for 2x rewards. Remember, this is risky as the PADTHAI pair could crash, so it’s important to add liquidity as early as possible (while PADTHAI is at a low price) and monitor the price of PADTHAI. But if you’re in relatively early, you can keep adding to this pool to gain more of the pool share early on. Note: you don’t have to farm this pool if you aren’t as risk-tolerant. However, the APY of these pools will be higher because of the 2x boost.
- As you start generating more PADTHAI from your pools, you can start taking profit by trading your PADTHAI for stablecoins or alts (like LINK, SNX) and put them in the other pools. The idea is to lock in your profits and use them to generate more yield. You want to be doing this as often as you can, as long as it makes sense with gas costs.
- When PADTHAI is at a high, you can withdraw liquidity from the PADTHAI pool to lock in your profits there. Note: this can be difficult to time as it’s basically trying to sell the top. So it could be a good idea to just sell during a pump to lock in your profits, and be happy with what you made even if it goes higher.
- You can hold on to the rest of your PADTHAI from your other pools and sell them at a high or keep them to use on the platform. The tokens will be used for algorithmic trading, market making, and pooled arbitrage, so there will be utility for them unlike a lot of other food farming coins.
So that’s my farming strategy in a nutshell. The main points are to get in as early as you can, use high gas, and de-risk by taking profit in to the stablecoin pools. I hope you find this helpful. If you have any questions, feel free to DM me!
Good luck my fellow COMrades, and LFG!
P.S. Depending on how much market demand Pad Thai will have, COM should get a nice pump during the launch if people decide to fomo into COM to farm that 2x pool.