To a beginner (and maybe just in general) farming/staking/mining can be complicated. I am currently in the research phase of my DeFi journey, and the main thing that i am confused with lately is how people crunch the numbers to figure out what investment will work best for them. Are there any guides explaining the fundamentals of choosing liquidity pairs? For example, i was reading some comments on this subreddit last night, and learned that Pool volume is a very important metric to consider. It seems to obvious to me now… higher volume = more transactions = more transaction fees to collect, but as a beginner i naively never considered that – what else am i not considering yet that i should be?
Really want to learn more about:
Risk analysis (on pairs, projects, tokenomics)
impermanent loss vs rewards for farming
Skills to vet the safety and longevity of any new “hidden gem” projects
Any online tools/calculators to make the math easier and/or somewhere that can teach how to crunch the numbers correctly
What red flags and risks a beginner may not be aware of, and how to spot them (in regards to warning signs a project may be acting maliciously, or that a token is about to flop, important changes in code ext)