I mean hell, it's the sole reason farming can ever even be profitable (for most current implementations of it)
you don't even have to be smart
and if you're *too* logical you miss out
just be slightly less dumb than most and assume they aren't gonna suddenly get smarter
side note on the farming thing, someone remind me to write a thread about it tomorrow or something, it's a whole thing that I've never seen anyone talk about correctly
• • •
Missing some Tweet in this thread? You can try to
force a refresh
thread about farming aka liquidity mining as an incentive model and why it's completely broken but nobody seems to realize it (skip to #17 if you're already intimately familiar w AMMs)
v long and nerdy, fair warning
1/n
2/n
farming was designed as an incentive for users to provide a service: using their own capital to provide liquidity to an AMM pool
AMMs were created to solve the problem of high latency/settlement times for transactions on ethereum.
3/n
while a ~15s transaction time doesn't seem v long, if you attempt to make a market on a 15s delay, you'd be forced to keep your spreads incredibly wide in order not to offer prices that become bad before you can update them, especially during volatile periods
since we have the whole stablecoin thing coming up tomorrow (good or bad), did u know you can basically get synthetic USD on any exchange that lets you collateralize your positions in non-stables?
how it works
you're holding ETH, for example
but you want to hold USD instead
You could sell your eth for... idk, let's say it's trading @ 2k
but wait
the ETH december futures on FTX are trading at (example) $2100