Thread by @technologypoet

The Elrond team just launched the Maiar Exchange. This is a fantastic opportunity to earn yield by farming without insanely high gas fees.

A few have asked me my strategy for yield farming on Maiar exchange, since there are many ways to go about it.

Lets get started 1/

$EGLD

First, none of this is financial advice. I strongly encourage you to do your own research. Yield farming is extremely risky with a high chance of losses.

If you are unsure how to begin using the Maiar Exchange, I wrote a how-to-guide here:

technologypoet.com/how-to-use-def…

2/

As we consider strategy, there are a few things to note:
1. The price of EGLD and MEX will fluctuate, often independently from each other. This fluctuation affects impermanent loss
2. 40% of the first year rewards will be paid out in the first 8 weeks
Chart by @WesleyBKress 3/

3. The rewards from the EGLD/MEX pool will be higher because they receive a 75x multiplier vs a 20x multiplier for EGLD/USDC and 5x for MEX staking. The higher yields on EGLD/USDC shown are a temporary anomaly as the team boosted them to encourage more liquidity.

4/

4. You will 2x your APR by earning in Locked MEX instead of MEX. Locked MEX unlocks over the next year, this ensures liquidity remains and stabilizes the MEX price.
5. Staking LP Tokens (your EGLD/MEX pair), will earn additional rewards, but incur fee if withdrawn too soon.

5/

5. You can periodically harvest and re-deploy your MEX to earn more yield because you're now compounding this yield as well.

6. MEX is inflationary, though team is looking to burn mechanisms to balance in medium term

So... to my strategy

6/

My strategy can be summed up as 'All In + more DCA'.
The beliefs that underlie my strategy are:
+ Long term the price of EGLD will rise, so buying more now still makes sense
+ Take maximum advantage of the immense opportunity available right now
+ I'm investing for 10+ years

7/

+ If MEX price rises faster than EGLD, I'm okay taking an impermanent loss on EGLD
+ This is one of a very few times I will yield farm ( Cardano Sundae Swap the other), so will deeply invest
+ MEX will have lasting value to Elrond ecosystem
+ Good to slowly convert MEX->EGLD

8/

Here's my strategy:
1. Keep 70% of my EGLD staked
2. Take 30% my EGLD, and swap half of it for MEX
3. Provide liquidity with all my MEX and the 15% of remaining EGLD
4. Stake my LP tokens and earn in Locked MEX for maximum rewards

9/

5. Harvest earned yield 2-3x a day for the first 8 weeks
6. Purchase enough EGLD every day to provide liquidity with all LKMEX earned
7. Provide liquidity and stake the rest of the LP Tokens
8. After 8 weeks stop purchasing more EGLD
9. Harvest LK MEX daily

10/

10. Stake LKMEX to earn MEX
11. During daily harvest stake all newly harvested LKMEX (from LP token rewards)
12. Swap all earned MEX for EGLD (from MEX staking)
13. Stake EGLD (or buy Elrond NFTs, haven't decided yet 😊)

Feel free to ask any questions, I'm happy to help!

/END

One addition I just learned is that most of the trading pairs with EDST (Essentially Elrond native tokens) will be against MEX. This brings huge utility to MEX, and a reason to perhaps not swap all my MEX to EGLD
I might reevaluate step 12 when time comes

https://twitter.com/WesleyBKress/status/1462052718848077837?s=20