Expanding Your DOGS Staking Strategy
In the previous article, we discussed the four options you have for staking DOGS. The most optimal strategy is likely to be a combination of these strategies. The aim of this discussion is to help you build your understanding. I encourage you to consider what I am discussing as your building blocks. There are so many different strategies you can implement that I can’t cover in this short article.
Key Factors To Consider When Selecting Your Staking Strategy
a) Loyalty Score — you need to have DOGS in the Dog Pound to build up your loyalty scores which will help to reduce taxes for selling DOGS. You will also be able to receive commissions for Piggy Bank referrals.
b) Earn PIGS — you should have DOGS/BUSD and DOGS/WBNB LP in the farms to earn more PIGS.
c) Flexibility — it is a good idea to have some flexibility in your strategy by using the Dog Pound manual pool. This will also give you an opportunity to do what others are not doing.
A note here is that different people will place different values on each point. You may place no value on the second and third points but building up your loyalty score is vital so having at least some DOGS in the Dog Pound is a non-negotiable to me.
Walk Through of Your Strategy Mix
I will go through an approach that you might want to take to optimally obtain a healthy mix of your 3 considerations
1. Stake a portion of your DOGS in the Dog Pound auto compounding pool. This will allow you to passively earn PIGS that can be staked in the Pig Pen and earn BUSD.
2. Stake the remaining DOGS in the Dog Pound manual pool to earn BNB.
3. Remove some DOGS from the Dog Pound then pair the DOGS with WBNB (by wrapping the BNB) you earned in the Dog Pound manual pool. The DOGS/WBNB LP can be staked on the farm to earn PIGS.
4. Remove some DOGS from the Dog Pound then pair the DOGS with BUSD that is paid out from the Pig Pen. The DOGS/BUSD LP can be staked on the farm to earn PIGS.
Putting It All Together
Care needs to be taken with taking DOGS out of the Dog Pound. A better alternative is to invest in the non-native farms and pools (i.e. farms and pools that don’t include DOGS or DRIP) to earn more DOGS. I discuss how to this here.
You can then pair the DOGS with available BUSD and WBNB to create LPs to add to the farms. If you earn more DOGS than BUSD and BNB, you can put them in the Dog Pound. You might have less exposure in the LP farms at the start but you can build this up over time as you earn more BNB and BUSD.
Other Options
Instead of options iii) and iv), you might decide to place the BUSD and WBNB in the pools to grow your position in DOGS. You could also create the BUSD/WBNB LP to boost the APR while accepting the risk of impermanent loss.
The final option is that you could simply take profits. It’s perfectly ok to do this. Be careful about getting caught up in the hype of the launch. If you are getting over-excited or seeing forums and YouTube lighting up, that is a good sign that it’s time to take some profits off the table. The best way to do this is by taking the your BUSD and BNB that you have earned.
Final Thoughts
I mentioned earlier that there are many different strategic possibilities. I encourage to consider your own strategy and look at what others are saying. A great example of an alternative strategy by another writer on medium can be found here. The key take away was to look for things that others are not doing. My plan is to incorporate some of these ideas in my strategy which I am yet to finalise.
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 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