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2 Weeks In DeFi And It Is Not All Good

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John Harding
@nozzy
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3 min read

Here is this weeks update on my DeFi journey, I am now 2 weeks in. First I will look at Quickswap.

The BIOS-MATIC pool is still not looking good so I have decided I will just cut my losses here.

I first withdrew from the farm and then from the liquidity pool and swapped my BIOS back to MATIC, I now have 20.48 MATIC, as I started with 26 MATIC in this pool I have lost nearly 6 MATIC.

The VOLT-MATIC pool still looks ok, but I have decided to withdraw so we can see what my total returns or losses are.

So I have withdrawn from the farm, then the liquidity pool and finally swapped my VOLT back to MATIC. I now have 48.14 MATIC in my wallet, at the start of this experiment i had 52.04 MATIC. I still have the dQUICK I earned from the pools and this needs to be 3.9 MATIC worth to just break even.

So after withdrawing and swapping my dQUICK to MATIC my wallet balance is now 51.81 MATIC, so in 2 weeks I have lost 0.23 MATIC. Proof that it's not all gravy train, pick the wrong tokens and you can lose. If I had put all into the VOLT-MATIC pool then I think I would be up, but the BIOS token killed me, the dQUICK tokens gained from the farm saved me a larger loss.

As the VOLT-MATIC pool has been quite stable this last 2 weeks I have decided I will put all into this pool and farm and see what happens going forward.

Next I will look at Cubdefi and Polycub, hopefully this is looking better...

First on Cubdefi I can see my total CUB tokens to claim after 2 weeks.

I have earned nearly $7 worth of CUB, but looking at the charts for CUB and BNB it looks like there is some divergence so I have probably suffered some impermanent loss. I am not wanting to withdraw from this pool yet as even with the impermanent loss I am hoping the CUB earned here and the POLYCUB earned from the airdrop will cover any losses.

I have decided to withdraw the CUB this week, trade half to BNB on Pancakeswap and add it to the liquidity pool, I have then added the LP tokens to the farm on Cubdefi, I may have a problem though, I am not sure I have left myself enough BNB in my wallet to be able to withdraw next time and swap. I may have to send a little BNB over from Binance next time I want to withdraw.

Looking at Polycub I have earned another 5.525 Polycub from the airdrop which I have claimed and added to the xPOLYCUB farm.

The price of Polycub seems to have gone down 40% over the last 2 weeks, but I will keep my tokens in for another week and see what happens, I guess the FOMO is wearing off from the new token and people are cashing out their airdrop rewards.

I have learned this week that yield farming in DeFi is not all profit. I have made a loss on my MATIC investments on Quickswap, I think I am doing ok on Cubdefi but without withdrawing and converting back to BNB I can not be sure. Everything I get from the airdrop on Polycub is a bonus.

I have decided not to invest anymore into DeFi this week.

None of this is financial advice, I just want to show you how I am performing purely for entertainment purposes, if you decide you would like to start investing on DeFi please make sure you do your own research and understand the implications of impermanent loss.

Follow and check back next week to see how things continue and if I can turn it around on Quickswap.

Posted Using LeoFinance Beta