[ This article was written as a submission to a contest for PublishOx and Harvest Finance. The original post may be found at: https://www.publish0x.com/kev-nag/understanding-my-reasoning-for-farming-the-busd-bnb-pair-on-xpnodmz ]
I have to tell you, I absolutely love the Harvest Finance platform. Both the UX and UI designs of the Dashboard make choosing and enacting investments a simple task for investors of any level of experience. As for me, it was this design structure that sealed my desire to make Harvest Finance one of my top investment vehicles. Also, I was drawn to Harvest by virtue of the fact they perform most of the hard work in maintaining the investments in such areas as auto-harvesting. Truly, Harvest does make the hard work of investing much easier. I don’t know anyone who doesn’t like making money while they sleep.
Once basically hooked on the Harvest platform, I was left with the task of where to “park” my money.
As the title of this article suggests, one of my major investments was in the BUSD-BNB Liquidity pair. So, why did I choose this pair over the others which provide much higher yields?
Well, the answer is two-fold. To understand the first reason, it is necessary to examine my current physical, lifestyle, and economic condition. In this regard, I first note that I am 62 years old, divorced, recently retired, and collecting Social Security retirement benefits. My savings and other investment accounts are not huge by any stretch. Nonetheless, the sum of Social Security received amply covers my rent and monthly living expenses, leaving me a modest sum to invest. Given this current status, I am no longer able to tolerate the types of high risk investments I could do when I was younger. In looking for a lower risk, stable, low fee investment, with a good return [99.08% at the time of the writing of this article (30.51% auto harvested CAKE/68.57% bFARM rewards)]. I was drawn to the BUSD-BNB pair which was suitable to meet my needs. I was able to move my funds easily into the pool with no errors, and, without paying an arm and a leg to create the investment.
Plus, at this juncture and parenthetically, while I’ve been hodling cryptocurrencies for about five years now, I have just recently moved into investing in staking and liquidity pools. Not being 100% sure of what I was doing in creating the BUSD-BNB farm, Harvest Finance, through its UI and direction (hover the cursor over “vault details”) made the process very easy and extremely stress free.
As for my second reason for choosing the BUSD-BNB pair, the stability and potential of the base elements of the pair were considered. I definitely was looking for a pairing that contained a stablecoin to mitigate potential price instability and risk of impermanent loss. Being a dollar backed coin, I gave a look at the one year price chart chart BUSD noting superior stability with price variances falling in the range of $0.99 to $1.01 for the period. Additionally, I liked the safety of including BUSD in my liquidity pairing by virtue of the fact that BUSD is the go-to base currency on most BSC decentralized trading pools. Then, I considered the potential of using BNB as the second half of the pair. I checked out the one year price chart on BNB and really liked the upward trend demonstrated. Liking the price potential of BNB led me to a look at its status within the cryptocurrency community. Virtually everything I read described BNB as a token with high potential based on a solid business strategy and strong past performance. Plus, in that BNB is issued by one of the world’s largest cryptocurrency exchanges didn’t hurt a bit.
Finally, I considered the safety of using the Harvest Finance platform as my platform of choice to make this investment. Everything I read in this regard pointed to Harvest being a very safe platform from both the “rug pull” perspective as well as the ever present danger from hackers. It is comforting to note that the Harvest vaults have been audited and as such are as safe as can be given the current environment we operate in.
To tell the truth, I did not dive into the technical aspects of this liquidity pair but relied on the above instead. I am more of a theoretical type person and honestly most of the techno-babble I read confuses the hell out of me. But, to date, I am very happy with my choice of platform as well as the return I receive from this liquidity pair.
I am merely an ordinary small investor who likes to share what I’ve learned and found interesting. Please take a few minutes and check out my other published articles. I am not in any way a financial advisor and as such, do your own research before investing. If you enjoyed this article please like it, comment and/or tip. Feedback is always welcome here.