This week, the DeFi markets continued their slow bleed, dragging my portfolio further down as positions drifted out of range. The overall drawdown deepened, with several pairs sitting far outside their LP ranges. I decided not to rebalance despite my 48-hour rule, which was a deliberate choice to avoid locking in impermanent loss while markets were in freefall. It is the same principle as trading: if you sell after a collapse, you lock in your losses. The same logic applies to LPs. Sometimes, doing nothing is the least damaging move.
Week 36 TLDR
- Weekly Fees Earned: $25.79 (lowest since early September)
- No New Positions Opened or Closed
Downvember continues the trend of Dumptober, with the crypto markets continuing to remain in a downtrend. With total deposited capital over $8900, now worth about $4255, this is a bitter pill to swallow. Yield does not matter much when range drift erodes principal, and this week was the clearest example yet. Watching a portfolio lose 20--50% on paper can trigger emotional decision-making. But the underlying thesis has not changed; DeFi yield farming is solid when your pools are in range, but these drawdowns require patience and not getting emotional.
The result was a low yield of only $25.79 for the week, which is my lowest since early September. Most pairs now sit outside their LP range, and rebalancing here would convert unrealized impermanent loss into a real one. This is the same as effectively selling the bottom. My failure to rebalance meant leaving money on the table, but also avoiding a guaranteed realized loss. The paradox of DeFi LPing: sometimes losing less is winning.
LP Ranges
Every position except $AVNT sits outside its range. USDT/STBL generated zero fees this week. When you are out of range, you are just holding tokens without earning, and in DeF,i this is called dead capital.
Week 36 Current Holdings
- CL200-AVNT/USDC (Base). This week generated $16.80, the only meaningful fee contributor. Down 43.28% with $357.06 in total fees at a 113.90% yearly APR. After the brief Coinbase listing spike, AVNT cooled off sharply. LP range currently sitting at $0.54 within the $0.52--$1.74 range.
- CL200-USDT/STBL (BSC). This week yielded $0.00. Down 51.86% with $650.45 in total fees at a 201.59% yearly APR. Current price at $0.073 sits well below the $0.096--$1.00 range. This past week, STBL had no real volume, and the yield flatlined as prices declined further.
- CL100-WETH/USDC (Base). This week generated $2.17. Down 20.98% with $76.40 in total fees at a 22.37% yearly APR. Current price at $3500 sits just below the $3648--$6014 range. Crypto analysts continue to push a narrative that we may see $5000 by year-end. At the moment, it's difficult to see that positivity.
- CL50-ASTER/USDT (BSC). This week yielded $4.33. Down 39.05% with $108.23 in total fees at a 44.68% yearly APR. Current price at $1.05 sits below the $1.15--$2.50 range. While the APR looks decent, liquidity reliability and volume quality are questionable, especially when flagged by DefiLlama.
- CL200-4/USDT (BSC). This week contributed $2.50. Down 38.50% with $33.46 in total fees at a 131.67% yearly APR. Current price at $0.062 sits below the $0.074--$0.905 range. This is the only coin in the portfolio that the thesis is based on vibes, and if we see an altcoin run, I do think this memecoin on BSC will run. But again, who knows?
The Bottom Line
This past week continues to evaluate my patience, emotions and resiliency as the portfolio continues to drawdown further. Most pools are out of range, and the overall crypto market sentiment is bearish, and I have altered the rebalancing plan to not rebalance this week to lock in impermanent losses. Will I live to regret that? I do not know, but at the moment, it's brutal in the crypto market.
Thank you for reading, and hope you have a good rest of the day!
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