New to Yield Farming? Here’s how to avoid getting REKT!

About the enter The Animal Farm? New to yield farming? Had a bad experience with a rug pull? Read this crucial article about the perils of yield farming and how to avoid losing money! And click that follow button!

But first, if you enjoy this article and benefit from reading it, please consider using my referral link to the Animal Farm. https://theanimal.farm/referrals/0x15A6429C32b3C1cd03b427f80D5170690d1f7061

Don’t have DRIP yet? You need a buddy! Use my buddy address what you connect your wallet! https://drip.community/faucet?buddy=0x15A6429C32b3C1cd03b427f80D5170690d1f7061

And, check out these other articles about how yield farming works: https://readmedium.com/how-does-yield-farming-work-in-the-animal-farm-dc6bc54f790 and how rewards work in the Animal Farm: https://readmedium.com/how-do-rewards-work-in-yield-farming-and-staking-animal-farm-specific-eaffd75870a1

Yield farming is an exciting venture! After depositing your tokens, you can stare at the rewards counter, eagerly watching the reward tokens adding up. But, if you’re not careful, those gains can be outpaced by the losses you incur without realizing it until it’s too late.

When yield farming on Binance Smart Chain took off in early 2021, it was not uncommon to see APRs in the 1,000,000+% range. Offering insane yields on seldom-heard-of coins seemed like free money. Early adopters couldn’t move quickly enough to buy obscure coins, pair them with BNB or BUSD, and deposit them. And sure enough, the rewards would start to rush in. It was exciting, to check daily to see hundreds of dollars of reward coins ready to be harvested. Some sites even allowed users to take their reward tokens, and pair them with other tokens, using the reward token as a base (the same way most pairs use BNB and BUSD as a base). So rewards never turned into profit, just a growing number of LP tokens to earn from. This seemed too good to be true! It was.

What was happening was gradual devaluation of the reward token. Sites like MarshmallowSwap, JaguarSwap, and PantherSwap offered insanely attractive APRs to their farms. And the rewards did come in! But, while it seemed like profits were being made, the underlying LP tokens were losing value at a faster rate. The gain did not make up for the loss.

Lessons were learned! But fortunes were also lost. There are MANY reasons why TheAnimal.farm will be different. First off, the DOGS and PIGS tokens are designed to be deflationary, with automatic burns, taxes that support the price increase, and dynamic emission protocols. But, it’s always a good idea to follow some basic strategy of responsible yield-farming, so you can keep making profits while securing your underlying assets.

Follow these simple rules to make sure you don’t get rekt:

1. Track your LP token values. Use a token tracker site like debank.com. You can connect your wallet to the site and see the value of the LP tokens you’re staking. (Note, Animal Farm will likely take a week or two from launch to appear on debank.com and similar sites). I recommend creating a Google Sheet or Excel spreadsheet to keep track of your LP value. Watch for declining value of assets.
2. Set up a system for your profits. It’s very tempting to take all profits and reinvest them. In the Animal Farm, you’ll receive rewards in DOGS, PIGS, and BUSD. You may want to take all your earned tokens and immediately re-invest them in the farm. But, it is great idea to take 20% of your daily rewards and keep them in a stable farm (like USDT-BUSD). The Animal Farm will surely start out with high APRs in those stablecoin farms, so it’s a great way to keep earning DOGS while keeping a non-volatile safety net.
3. Use the DRIP Liberation to turn BUSD into DRIP-BUSD. The DRIP-BUSD LP token is expected to continuously increase in value as DRIP rises over the next year, and you can earn PIGS when that farm. Win-win.
4. Buy DRIP with your BUSD! Drip.community is a great investment with a great developer (the same as The Animal Farm!). Drip is extremely bullish, so putting some BUSD profits into the DRIP ecosystem is highly recommended! If you’re new to DRIP, know that a buddy referral is required for deposit. Consider using mine:
5. Beware of sites that look the same as the Animal Farm. When Pancakeswap came out, there were dozens and dozens of clones that used the same user interface, even the same font. But, the tokens that were rewarded quickly lost their value as users simply sold their rewards. Pancakeswap and Apeswap are two of the survivors from early 2021 that still maintain utility in the swapping community, which is why their reward tokens (CAKE and BANANA) have survived. Animal Farm has many innovations that set it apart from the rest of the yield farming sites. It will surely be copied, but I recommend staying away from the clones without doing your own research on them!
6. Join the Animal Farm Telegram group! You can remain up-to-date on announcements about the site and you will even hear directly from the developer, ForexShark. He’s a real person who answers questions from users directly.

Good luck with the farming! Stay smart, track your assets, and you can find wealth!

Did you find this article helpful? Please consider supporting my writing by using my Animal Farm referral link: https://theanimal.farm/referrals/0x15A6429C32b3C1cd03b427f80D5170690d1f7061

If you haven’t yet gotten your first DRIP yet, there’s no time like the present! Please consider using my DRIP buddy link when you do! https://drip.community/faucet?buddy=0x15A6429C32b3C1cd03b427f80D5170690d1f7061