Suggested strategy for farming on RobiniaSwap
Farming a project as new as Robinia can be tricky. From one angle it looks like a waste of time as price usually tanks at launch, on the other side it looks like you’re actually being a part of a project that is going be bigger in the future.
Platforms such as pancakeswap, BakerySwap and a handful of other saw their tokens nosedive at launch with. Cake dropped to an all time low of under 0.2$ before rocketing to an all time high of over 40$; a 200X move. Most other DeFi platforms share a similar story.
Robinia appears to currently be in its own darkest days with price below 30 cents. For farmers, it’s time to make that big decision. But if you’re still mining RBS, here’s how you can maximize the number of tokens you earn.
Choosing a farm
At The launch of RobiniaSwap, I quickly staked some of my BUSD and BNB lying dormant. Platforms like Robinia gives your leverage on how to earn their token. Locking up your dormant token on a pool is a pretty much low risk approach, only thing to lose if the deposit fee which is currently 1% only. To maximize earnings, farming is a better move, it comes with more risks of course.
As an RBS holder who wish to farm more tokens, selecting an RBS-stablecoin farm exposes you to more risks of impermanent loss. A better approach will be selecting a liquidity pool of RBS and another token whose value could also vary. This gives you a chance of offsetting impermanent loss while earning more tokens.
However; in any of these instances, consider some risks which are personal to you and ensure you have developed competent management skills before undertaking this risk. Till date, impermanent loss is the most common risk associated with providing liquidity. Unfortunate events like ‘technical exploitation’ should also be considered.
Using this approach, consider joining as many available liquidity farms possible. Put your dormant assets to work.
Re-investing
So, you just earned some RBS, a good move will be putting it back to earn even more as you wait for better days. For minimal risk and less reward, staking your RBS in staking pools is the right approach. RBS pool is currently juicy as APR is still high.
To maximize earnings, consider adding more liquidity to your current pool or joining another pool using the RBS you earned and another dormant asset in our portfolio. This has same risk as described earlier.
However; considering current RBS price, it is suggested that you give at least 7days interval before compounding your earnings. This is to keep you out of loss due to transaction charges as harvesting and compounding would cost over $1.
Selling?
Well; a couple of reasons could push one to sell, but considering the current price, selling should be a less popular decision. But regardless, it is important to ensure that this action will be more profitable to you than holding and reinvesting.
If Robinia finds its feet in the end, every token and impermanent loss will be really worth it. Regardless, do your own research as this is not a financial advice.
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