👨🌾Yield Farming
One of the first things we will do is secure significant positions in high quality Cardano tokens. This will allow us to acquire a significant share of many of their pools as well. We expect quality CNTs and ADA to both appreciate in value considerably over the next 12 months and trading volume along with them. This will not only allow us to profit from the increased value of both tokens in the pair, but allow us to take advantage of the substantial increase in fees generated from pools during the bull run. These ideal scenarios will help offset Impermanent Loss and allow us to make even more profit. Each farm will be looked after meticulously, and on an individual basis. We will pull and re balance our LP as needed, and we'll outright stop farming some tokens from time to time, when necessary. Impermanent Loss doesn't always lead to losses, in some cases the pairs come back into balance. Sometimes ADA will gain value and not the token, sometimes the token will gain value and not ADA. In some of these cases, the paired token will eventually catch up, so pulling LP may not be necessary. All of this will put us in a great position to secure large sums of tokens from great projects that have yet to release their products. This will give us a significant edge on the competition and allow us to hold a large portion of their liquidity early, allowing us to earn even more on appreciation, fees and rewards during the bull run. For the members who might not understand what's being discussed, lets cover what a simplified version of Yield Farming is. Any time you buy or sell tokens on an AMM DEX, you're executing those trades against an existing pool of those tokens. Think of it this way. If you want to buy $IAG from a DEX, then the DEX needs to have a supply of $IAG available for you to buy. The same is true if you want to sell $IAG, the DEX needs to have ADA available for you to do so. In this case the $IAG and ADA are both in a "Liquidity Pool" that you can buy from or sell into. Liquidity Pools usually have a small fee associated with them that is paid by the individual transacting in the pool. These fees are then paid to the individuals providing the Liquidity. Usually you can add your own tokens to this pool in a matching pair, to provide additional liquidity yourself. if you want to add your own liquidity to a $IAG/ADA pool, then you need to provide an equal value (50%/50%) of both $IAG and ADA to do so. Some pools allow you to provide liquidity with different ratios but we won't go into that here. When you supply liquidity like in the sample above, you're given what's known as Liquidity Provider tokens, known as "LP" tokens. You can then stake these tokens to earn a % of the fees generated when people execute buy and sell orders against the pool. Sometimes projects or DeFi protocols provide additional rewards to liquidity providers on top of the fees they earn. This is done to incentivize the public to provide additional liquidity.
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