My Thoughts On The Animal Farm Relaunch Delay
The delay of the Animal Farm is very disappointing and is rightly causing FUD. Having said that, I am looking beyond the short term but do acknowledge this is a short-medium term blow in confidence. There is a lot of capital that was going to come into Animal Farm that probably won’t now and will take a while to win back.
One thing that is clear is Forex has not fixed his time management problems. I really believe he needs someone to come on board to manage his time but I also believe Forex will stubbornly continue in his ways. I think this is just part of the package.
Overall, my view is that despite a blow to confidence in the short term, in 3–6 months we will have largely forgotten about it. The future is more important than the present when investing so what I want to do is focus on a change that Forex just announced. Before I do that, I will acknowledge that many people are extremely disappointed and disillusioned. Rightly so!
Change To DRIP/BUSD Farm
So at the last minute with all the delays, Forex decided to change the game theory of the Animal Farm. Keep in mind that Forex only deploys immutable contracts so he can’t change it later. You’ll also note that the change has ramifications for the whole farm.
So the changes made are as follows:
- DRIP/BUSD farm will pay DOGS instead of PIGS. It will have the highest rate of DOGS emissions of all farms and pools.
- The DRIP/BUSD deposit fee will remain at 1% but the withdrawal fee will be increased to 2%.
- When the fees are collected from the DRIP/BUSD farm, the LP will be split then the BUSD will be swapped for DRIP. All the DRIP will then be sent to the Faucet tax vault to help with paying out the Faucet.
Improved Game Theory
Overall, I believe this is a positive change and will be beneficial in the long term. You can question the timing of it but first I will analyse the benefits of this change in terms of the game theory.
- Benefit For DRIP
A big problem currently facing DRIP is that new DRIP tokens are being minted to pay out claims from the Faucet. There is simply not enough DRIP in the tax vault to pay out claims. There is no doubt that boosting the tax vault will be beneficial to DRIP as it will reduce inflationary pressures. Alongside this, there will be buy pressure added to DRIP. I know that adding buy pressure for DRIP has been a focus for Forex.
The other positive is that I don’t believe the withdrawal fee increase will have an impact on the decision people make regarding whether or not to invest in the DRIP/BUSD farm.
2. Benefit For DOGS
While this change will cause more inflation for DOGS, it is now the only way you can earn PIGS from the farm. This makes DOGS a more valuable asset and if you hold your DOGS in the Dog Pound, your earnings from people who sell DOGS will also increase.
3. Benefit For PIGS
One of my concerns about the dynamics of the Animal Farm has been the sell pressure being put on PIGS. You will either need DOGS or to buy directly off the market. Inflation for PIGS is now significantly reduced as it becomes more scarce. Additionally, with more DOGS to be sold there will be a boost to rewards in the Pig Pen. There will still be people who use the farms to dump PIGS but overall the sell pressure is greatly reduced.
Final Thoughts
I believe the change in game theory is bullish for the whole ecosystem. For now, I will continue to support the project wholeheartedly. I will also be honest when I think improvements could be made. The Drip/Animal Farm community is amazing and only HEX can rival it. I can’t (and won’t) say when the Animal Farm will re-launch but I am an optimistic person and expect it will. I also have DOGS so it might be hopium. Again, I’ll let you decide.
The price of PIGS and DRIP have come under pressure with DRIP trading below $5 before at the time of writing. Some may see this as an opportunity to buy cheap DRIP and I will consider it. But I am also someone who wants to be diversified into a number of projects as the anxiety would be extremely high if everything was tied up to this.
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