Animal Farm Relaunch — Take 2
We’ve been here before. I was writing about how I planned to play the Animal Farm relaunch but then that launch didn’t happen. Now we have a (what I will call tentative) launch date of 1 November. I was critical of the delay and the way it was communicated but I do have to give Forex credit on his ability to keep pushing forward. Love him or hate him, the guy has incredible fortitude and focus on the future.
The key point of my article is to discuss the changes to the game theory of the Animal Farm. I believe the changes are a positive for the Animal Farm and DRIP. What is clear is that yield chasers are not going to like the changes. Previously I was concerned that the price of PIGS would come under sell pressure on launch due to high APRs in the farms. I believe Forex has addressed this which will lead to a sustainable project in the long term. There has been a positive reaction the news in terms of the price of PIGS.
Lower Token Rewards In The Farms and Pools
Forex announced in an AMA that, when compared with v1, the emissions rate for the PIGS tokens will reduce by 90% and the emissions rate for DOGS will reduce by 60%. Rather than earning 2–3% a day out of the gate and earning a tonne of money in a week, a long term mindset will be needed to invest in the protocol.
In v1, I farmed a lot of PIGS on launch and got wrecked for holding them. To be honest, I probably would have lost that money if I took it so I don’t regret holding on. I’ve seen many projects launch with high inflation that lead to people dumping tokens and taking money from people who want to invest in the protocol for the long term.
The only way to truly benefit from farming is through price appreciation of the DOGS and PIGS tokens. With reduced supply, this will put upward pressure on the price (or at least reduce sell pressure). The Dynamic Supply Algorithm will still be in play and work to adjust emission rates according to price action. It won’t eliminate the frustrating periods of low returns but this is a healthy measure to ensure sustainability.
Locked Liquidity Used To Pay More BNB To The Dog Pound
Only 30% of people claimed DOGS LP from the DOGS crediting so that has left a high amount of locked liquidity. Forex has acknowledged that the initial payments to the Dog Pound may be a bit low from sell taxes so will use the locked liquidity to boost BNB rewards in the Dog Pound. It is clear that Forex has identified the value of ensuring rewards are maximised in the Dog Pound and Pig Pen.
Does My Strategy Change?
At this stage I will maintain my previously announced strategy to claim BNB from the Dog Pound. I believe the DRIP price is cheap right now and my Faucet is relatively small so I see an opportunity to build that up. I am also looking to put more money into other projects like Bomb Money and MDB. I think it’s important to diversify your investments and am always hunting for value rather than just momentum and the highest APRs.
Final Thoughts
I believe all the game theory changes made to the Animal Farm since the failed launch are incredibly bullish for PIGS, DOGS, and DRIP. The market seems to agree with that view in terms of the PIGS price. Maybe not so much with the DRIP price. I just hope that Forex can launch as he intends to and ends the delays to keep the sceptics quiet.
Disclaimer: None of what is written in this article constitutes financial advice. Investing in cryptocurrencies, and in particular decentralised finance, is high risk. What I write is not a recommendation to invest in the projects I discuss. I am not aware of your personal circumstances. Only invest what you can afford to lose. Make sure to do your own research rather than relying solely on my content.
Links
Animal Farm Home Page: https://defi.animalfarm.app/
Drip Community Wiki: https://dripcommunity.wiki/
Drip Garden Referral Link:
https://defi.animalfarm.app/garden/0xDa805dBC6530c9ed1360b7c61624613c4Fe380a9
Piggy Bank Referral Link:
https://defi.animalfarm.app/piggy-bank/0xDa805dBC6530c9ed1360b7c61624613c4Fe380a9
Drip Faucet
You need a buddy address to deposit DRIP into the Faucet. If you would like to deposit DRIP into the Faucet using my link please feel free to do so. There are other bigger players that may be able to promise more airdrops.
Drip Faucet Buddy Link: drip.community/faucet?buddy=0xa7AC3Ea7D8dEC039F459934Cb0d0152a2e2B28f1