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🎯 Farming Strategies: APY Maximization

Master single-staking, LP farming, and vault strategies

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🎯 Farming Strategies

Different farming strategies offer varying risk-reward profiles. Choose based on your risk tolerance, time commitment, and investment goals.

🎮 Interactive: Strategy Comparison Tool

Select a strategy to see its characteristics:

🔒

Single-Asset Staking

Stake a single token (like ETH or USDC) to earn rewards without impermanent loss risk

Risk Level
Low
Typical APY
5-15%
✅ Advantages
  • •No impermanent loss
  • •Simple to understand
  • •Lower risk
⚠️ Disadvantages
  • •Lower yields
  • •Limited to certain tokens
  • •Rewards may be in different token
🎯 Best For
Conservative investors wanting stable yields

Strategy Selection Framework

💰

Small Portfolio ($100-1,000)

Focus on single-asset staking to avoid high gas fees eating into returns. Use Layer 2 solutions like Polygon for cheaper transactions.

→ Recommended: Single-asset staking on L2
💼

Medium Portfolio ($1,000-10,000)

Can handle LP farming with impermanent loss risk. Gas fees are manageable. Consider auto-compounding vaults for efficiency.

→ Recommended: LP farming + auto-compounding vaults
🏦

Large Portfolio ($10,000+)

Diversify across multiple strategies. Use stablecoin pairs to reduce IL. Explore leveraged farming for experienced users.

→ Recommended: Diversified multi-strategy approach

🎮 Interactive: APY vs APR Calculator

Understand the power of compounding - APY accounts for it, APR doesn't:

$1,000$50,000
5%200%

Comparison

APR (Simple Interest):50%
Annual Return:$5,000
APY (Compound Interest):64.82%
Annual Return:$6,481.57
Compounding Bonus:+$1,481.57
29.6% more with compounding
💡 Key Insight
The more frequently you compound, the higher your APY. Auto-compounding vaults maximize this by compounding multiple times per day!
💡

Pro Farming Tips

  • •Diversify: Don't put all funds in one farm - spread across 3-5 strategies
  • •Watch for sustainability: 1000%+ APYs are often temporary and risky
  • •Consider stablecoins: ETH/USDC pairs reduce impermanent loss vs ETH/ALT
  • •Track gas fees: Use Layer 2 or wait for low-traffic periods to save on fees
  • •Harvest regularly: Claim and compound rewards weekly for maximum returns