The Farmix protocol offers a variety of strategies for participants, allowing them to choose the best option based on market conditions and their risk tolerance. Here is a detailed description of each current strategy:
Strategy #1: Token Holding and Staking
- What is it? This strategy is suitable for those who prefer stable returns and minimal risk. You simply stake your tokens (TON, USDT, NOT) in Farmix.
- Yield: You will earn a high APY (annual percentage yield) based on staking. The yield depends on how actively your tokens are used within the Farmix ecosystem.
- Risks: Minimal, as this is standard staking where the yield depends on the utilization rate.
Strategy #2: Holding a Farm Without Leverage Using the Auto-compounder Bot
- What is it? You open a farm without leverage via farmix.tg and use the auto-compounder bot to increase your yield. The bot will periodically collect rewards from your farm and reinvest them back into the farm.
- Yield: Thanks to the auto-compounder, your yield will be higher than if you simply used DEX interfaces, as you are continually reinvesting rewards.
- Risks: This strategy will not be available until the auto-compounder bot is fully operational. Once activated, the risk will be the same as with standard farming without leverage—i.e., the risk of impermanent losses.
Strategy #3: Holding a Farm With Leverage During a Bull Market
- What is it? If you believe the market will rise, you can open a farm with leverage using a stablecoin (e.g., USDT) as the borrow asset. This allows you to increase your exposure to the expected growth of the second asset (e.g., TON or NOT).
- Example: Suppose you believe TON will rise in price. You open a 3x leveraged farm in the TON-USDT pair, where USDT is the borrow asset. If the price of TON increases, you will earn a higher yield on your invested assets.
- Yield: Potential yield increases due to leverage, giving you the opportunity to significantly boost profits in a bull market.
- Risks: You must monitor the health factor (HF) of your position. If HF falls below 1, your position may be liquidated.
Strategy #4: Holding a Farm With Leverage During a Bear Market
- What is it? If you expect asset prices (e.g., TON or NOT) to decline, you can open a leveraged farm, using the asset you expect to drop in price as the borrow asset.
- Example: You expect the price of TON or NOT to fall. In this case, you can borrow TON or NOT as the collateral and use it to open a farm. If the price of that asset decreases, your borrowed asset becomes cheaper, increasing your farm’s yield.
- Yield: In this case, your profits depend on how much the price of the borrowed asset drops. If your prediction is correct, your debt decreases and the yield from the farm increases.
- Risks: As in the previous strategy, it’s crucial to watch the health factor. If the price of the borrowed asset doesn’t decrease as expected, you might find yourself in a risky situation.