1/So I tweeted yesterday about how providing liquidity in defi exposes you to impermanent loss, which is basically just negative PnL from short gamma. But what is gamma?
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As more retail enters DeFi, more capital will flow toward yield farms as users seek to capture the best return on their idle assets.
I don't claim to have it all figured out, though here are a few tips I've learned over the past year.
A 🧵
Do you yield farm / LP?
It's sold as a passive strategy, but farming is the most nuanced, unintuitive, and poorly understood activity in Defi.
It's more like putting on a short-term trade than buying fixed-income.
🧑🌾 Yet Another Guide to Yield Farming
Part 1: Impermanent Loss
I’m not saying if you RT and tag a friend you WILL in for a surprise...but if you RT and tag a friend you MIGHT be in for a surprise 😘
Learn from master @cyrii_MM#DeFi#Solana#Airdrop#COPE
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A quick introduction to Mist's NFTs, Farming, Staking, and game style. The Mist world is large and complex. We'll inform you piece by piece.
Article:
https://t.co/xfUfwy7fUF
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