My Strategy For the Animal Farm Relaunch
We’re almost there. After 7 long months, the Animal Farm re-launch is finally upon us. I was previously excited like a school kid but now it is the calm before the storm. I actually think this is healthy. I remember when we transitioned from Manor Farm to Animal Farm back in January. Excitement got the better of me and I ended up making some decisions I now regret. Today, I’m much more circumspect about it and hardened by the crypto bear market.
So now it is time to reveal what I will be doing for the launch of the Animal Farm. Before I do that, I will explain my personal circumstances to give an indication of why I made my decisions. Your personal circumstances are likely to be different and should guide your strategy.
- I don’t have a lot of spare capital and it is hard for me to justify selling other investments.
- Drip-Animal Farm is by far my largest investment in the DeFi space. I am always weary of having a portfolio too heavily concentrated in a single project.
- I don’t know what will happen to token prices or TVL in the pools and farms on the launch.
- I can always change my mind and pivot my strategy as information and circumstances change.
What I Will Be Doing — An Outline
- Place DOGS in the Dog Pound manual pool and collect BNB.
- Assess the situation to decide what to do with my BNB earnings.
- Deposit some of my Bitcoin holdings into the BTCB pool.
- Have a “savings account” where I deposit half into the BUSD pool and the other half into a stable coin LP pair. This is most likely to be DAI/BUSD because I like these 2 coins and I think fewer people will participate in this farm.
- I will assess the situation with the BUSD I earn from the Pig Pen.
Dog Pound Strategy
The reason I am depositing into the manual compound pool is that I want flexibility. I don’t know exactly what will happen on launch but I am anticipating that DOGS will have strong buy pressure and a lack of sell pressure due to the high sell tax. I’m also not that concerned about reducing my taxes at the fastest possible rate.
I have seen many YouTubers with large bags talk about wanting to buy DOGS on launch. To me, if this is the case, I am not convinced that selling half my BNB rewards at a higher DOGS price is the best strategy.
At the same time, because of the high tax, I believe that initially the rewards in the Dog Pound will be low. This means that my initial decision is not likely to matter all that much. If the rewards remain low then it might make sense for me to shift to the auto compounding pool. I believe over time that the BNB rewards will increase as the sell tax becomes less restrictive.
What I Will Look To Do With BUSD and BNB Rewards
i) Earn More PIGS
The ultimate goal of investing in the Animal Farm is to get as many PIGS into the Pig Pen as possible. The auto compounding option maintains your DOGS position while building up your DOGS/WBNB LP position. The problem is that you don’t get to decide what to do with the BNB. I have previously suggested that you could take some of your DOGS (either farmed or from the Dog Pound) and pair it with the BNB you earned.
The benefit of this strategy is that you double your DOGS/WBNB LP position and earn twice as many PIGS as you would if you just used the auto compounder. This could be a winning strategy at the start as you will have double the LP while the farm APR is higher. Conversely, the auto compounder will compound much faster than a manual strategy and will not consume as much in gas fees so is also a good option.
I will also be looking for is to pair BUSD with DOGS to farm the DOGS/BUSD LP. I don’t believe the APR in the Pig Pen will be particularly high to start off but I will be looking to pair my BUSD rewards with some of DOGS.
ii) Buy More DRIP
The price of DRIP continues to underperform the price of PIGS. I have been accumulating DRIP recently rather than PIGS and still believe it represents better value. If this continues, taking the BNB earned in the Dog Pound gives me a good option to swap it to DRIP.
iii) Deposit In Reservoir
This is my least preferred strategy but I believe in supporting the DRIP ecosystem and am likely to deposit into Reservoir at some point. This may become a more serious option with a potential v2 Reservoir that Forex has mentioned in his AMAs.
iv) Earn More DOGS
Another good option is to continue accumulating DOGS. I will consider depositing my BUSD and WBNB into the pools or even pair them up to place in the LP farm where the APR is likely to be higher. The deposit and withdrawal fees are also lower.
v) Buy More PIGS or DOGS
This is my least likely option. If there are significant price falls in PIGS or DOGS (I don’t expect this) then it may be worthwhile buying more with the BUSD earned in the Pig Pen or the BNB received in the Dog Pound. If there is sell pressure I will be receiving more BUSD and BNB rewards as well.
vi) Increase My Position in the DRIP Garden
I may use the DRIP Liberation contract to create DRIP/BUSD LP. I am less focussed on the DRIP/BUSD farm as I believe the APRs will fall quickly. I have a small stack of LP that I will farm but I would prefer new capital to go into the DRIP Garden. My plan is to continue my 6–1 compound-claim strategy and place the claimed LP into the DRIP/BUSD farm. This is a marathon, not a sprint.
vi) Take Profits
I may take BNB and BUSD to other projects. It won’t happen all the time but I do intend to take some profit along the way.
Final Thoughts
As you can see, the only thing that I have confirmed is that I will be placing my DOGS in the manual compounding pool. Everything else is up in the air but you have an idea of what my plan looks like. There are simply too many variables that allow me to tell you exactly what I will do. You could keep it simple and just put your DOGS in the auto compounding pool.
The main point to highlight is that by claiming manually I have a range of options. I will look to do a recap of what I end up doing about a week after the launch. I would love to hear your thoughts. Is your view different to mine?
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