Isn’t that the golden question?
Prime DEFI season
It took me about a year and a half to learn this one thing, after going through loads of rugpulls, honey pots, pump and dumps, farming with stablecoins, altcoins and shit coins and lending and borrowing protocols. To fund these, I had a bunch of GPU miners constantly refuelling my degen bags to withstand the vagaries of the ponziverse I was living in.
The golden answer: 150% APR*
In order of riskiest to safest,
- Alpha project snipes 2000% or -100% (this needs some quick decisions at LP formation stage)
- Genesis farms 200% (during tomb fork season)
- Farming and dumping 75% (you will have to constantly scout reliable new projects and be there from the start )
- Altcoin LP staking 35%
- Stablecoin farms 20%
With a combination of the above, I managed to get 8x my initial investment — from 30k to 250k. That came with some luck, so by removing the “luck" element, I would say a 150% APR is a reasonable amount. This would have to come with the qualifier that loads of research has to be done on twitter, telegram, medium, tiktok to be intune with the murmurs of the degen community. This APR is not possible without hard work.
Post Luna crash
All the above was possible before the algostable coin debacle that ended the last golden period of defi, so what about now?
Moderated reasonable APR: 120%
Today, people are way more cautious, new projects have a higher barrier to entry, DEFI TVL has dropped from $180 billion to $55 billion since November 2021. It is still possible to earn through research using bear market strategies. Since May, I have been reaping an average of 120% APR until now by playing with the proportion of the above strategies outlined. If you are new to DEFI, do not be greedy and go for safer plays.
Some tips to observe:
- Invest in projects with anti whale mechanisms
- Pursue sustainable projects
- Understand how to review smart contracts
- Avoid chasing APR
- Try to do less pump and dumps and go for steady, reasonable passive income projects
Stay safe.
