Farming Airdrops had their limits
This changed with yield exchanges like @RateX_Dex or @ExponentFinance where you can leverage airdrops, stack and farm yields
A market always consists of 3 underlying tokens (YT, LP, PT). But what do they mean?
YT-PST-2507: Farm Yield and Airdrop(s). It's basically leverage trading just that the token will go to zero at maturity
PST-2507: LP token for the yield exchange and gets rewarded with fees
-PST-2507: Give up the points for a fixed yield
On @RateX_Dex, you can currently farm 876x Huma feathers with PST
Is the leverage always that high? No, the closer the maturity date, the higher the multiplier
At the same time, people are cashing out, which lowers the YT-PST-2507 value faster as the maturity date approaches
For me, I started weeks ago
What's the benefit of buying YT-PST-2507 early? You can exit early enough before the price hits 0 and you farm yield for a long time (got around 300 PST back)
Downside? When leverage gets juicy, my investment is already down -90%
The position above earned me 40,000 Huma feathers
With just holding PST (locking it for 3m) I would have get around 2-3K feathers only
Is it worth it?
So far, we have around 2.3B Huma feathers, with 1 month to go until the next airdrop of 210M HUMA ($7.6M)
With an estimated total of 3.5B feathers, the conversion rate would be around 1 feather = $0.002 (napkin math)
40K feathers x $0.002 = $80 + $300 Yield = $380
So, why take the risks for a zero-sum game?
The goal is to be smarter than me. Yield trading is advanced trading! You need to enter the market at local lows and buy when the price is still stable or has even gone up
Last but not least, you need to have trust in the Airdrop
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