Wondering why you’ve bought a token that popped up on Dexscreener with the correct address after checking but still unable to sell it?
You got honeypotted.
Read on to understand how the new trending scam works and how to avoid losing your shekels to them.
Before we dive in, its best to check out this thread I wrote last year about the random tokens with good volume turning out to be honeypots before you dive in.
Pretty sure I’ve seen CT say things like “Why yield farm when you can put them in T-Bills for 4-5% and its safe?”
Well, if you only find yields under 4-5% then you probably aren’t yield farming right.
A🧵 about the art of yield farming with some alpha below:
1/ What is yield farming? You first need to understand this.
How do protocols generate revenue?
DEXs → % of the swap fees
Money Markets → % of the interest charged to borrowers
Derivatives → % of the fees used to open/close positions or from funding rates
1 way that will help gain an edge is to follow whales/smart money and check what they're up to.
Here's a list of the top 10 + 1 wallets on @DeBankDeFi to see what they're up to!
Some of the key findings:
▶️Some are taking part in APE staking.
▶️Common farms include Convex, Beefy, GMX.
▶️Majority of funds still on Ethereum.
▶️1 is net short USDT, another is net short VST.
▶️2 wallets have SUDO-ETH positions.
▶️Some are in liquid staking derivative farms (stMatic, beFTM, wstETH)
▶️1 is active in TreasureDAO ecosystem.
▶️1 has been in Canto since the beginning, compounding.