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Liquidity mining on ETH Mainnet

I have been mining and farming on Polygon for a while and have gotten used to the negligible fees. You can stake/unstake/hop around to different farms, etc very easily. I am around 75% stable LP/staking and 25% volatile staking/LP. While I trust the Polygon system, I don’t entirely trust all of the projects on Polygon and have run out of good ideas to continue.

I took a look at becoming a big boy and stepping up to ETH main net. I would like to use Yearn and Convex. Even with a pretty decent amount of money (not that I have that), the gas fees make it nearly impossible unless I am a hedge fund or an asset manager. Gas of $5-8 to approve a spend, another $5-8 to LP, then again to stake, etc etc. Not to mention if you ever want to harvest or take some money out of a platform, then even more gas fees to offramp.

Assuming I am staking at an average 15% APR (so around 0.04%/day), it might take me 2 weeks-1 month just to break even before I start actually earning money. Maybe even more if I divide up between 3-5 platforms.

Am I missing something? I would rather just use CeFi right? Thoughts?

What do you think?

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7 Comments

  1. I think the reason that Polygon has all these shit projects is because gas is free. Same for BSC. I lost a bunch of money in various Polygon defi misadventures (Iron, Wault, etc.) — now I’m just on L1 ethereum and doing well. I think the high gas fees keep a lot of the bad players away.

  2. I think for now cefi is fine. I have used the curve eco-system and when gas was ~10 pre shiba swap launch I thought eth mainnet was fine even if you did not have a 5 digit bag.

    I personally claim on convex when gas is <10 but that occurs maybe once every 2 weeks now.

    Defi in general kind of ebs and flows with gas. If the market were to crash I like having some money on a cefi so I can buy the dip instead of swapping on uni when gas is 200

  3. Hey there,

    I agree and in pretty much the same boat. I have mostly been on Polygon moving around and trying different things and learning. Right now I have some money on Polygon in Curve on the atricrypto pool which is earning around 25%. I moved some funds over to Binance Smart Chain to mess around there and have that crypto on Pancake swap. Recently moved some funds over to Terra, if you are looking at something different I would check this out. They have a couple different platforms, Anchor and Mirror, which you can farm on; the fees are pretty cheap and I figure I am farming at about 50%, but it gets complicated. Basically you setup collateral on Anchor which earns 20% and then you can borrow some of that to put on Mirror and earn another 20%+ depending on what you do, very interesting and I am still learning.

    I have stayed off of ETH because of the gas fees and I seem to be able to get equal or better yields on these other chains anyway.

  4. If you find projects that are worth the fees, it’s worth it. Yearn autocompound, so set it and forget it.

    I also like Sushiswap, badger, and Pickle finance. You don’t need 4 or 5 figure deposits to make it worth it. Claim once a week (or more if gas is low). Sushiswap is like quickswap, where you get fees plus a secondary token. Pickle finance autocompounds yield and gives a secondary token if you use their farms.

    I don’t have enough in Convex to make up for gas fees, but there’s lots of promise there.

Is it known which cryptos Safemoon exchange will support.

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