Why and where I am Yield Farming.

Yield farming is the process of staking coins in return for more coins. The defi space has exploded with this over the last year and although I have explored the options, over the last while I thought larger gains can be made by holding and trading what I have.

The other day Hive account@abh12345 shared with me Kionly.io. (Thanks Asher!) Koinly is a cryptocurrency tax reporter. You can import wallet transactions and it calculates your taxable profits and for a fee you can get a full tax report. So I imported my data and well I guess I better start putting by for the tax I owe. 2020 taxes are due by the end of October here in Ireland. That gives me a good few month to liquidate some crypto to pay my bill.

Crypto is a volatile market, often like playing the slots. And although I think good gains can be made from the moon bags, I think I am holding, I have also been around crypt to know if a bear market hits, we could be in it for a while. In the last bull run, I had no exit plan. I didn’t take profits as I should have and yes, I made a lot of mistakes. But this time I will be a lot more prepared, and a little more educated.

So I have decided to take some profits now and put them in stable coin to stake. The app I have decided to use is Yeld.

Yeld is currently offering between 84% and 130% APY depending on the stable you stake. This is paid out 82% in Yeld and the balance in stable. So why did I choose Yeld over other options, and let's face it, there are plenty of options available?

Well first it's not a Uniswap liquidity pool, so I do not have to worry about the Eth/Coin impairment losses. Second, the tokenomics of Yeld are very interesting. There are 60,000 coins, with a buy and burn to 10K coins. Exit of the stable farm has a 5% fee, used to fund the buy, and burn and also fund a unique concept of a retirement yield. The retirement pool is different to the stable staking pools. By staking Yeld in the retirement pool, you will be entitled to earn Eth on a daily basis. So you stake stable and earn Yeld, then you can stake the Yeld and earn Eth. With a limited supply, burning of tokens, and a great return I think Yeld could do really well. You can read more about Yeld here

At the current rates of return and 9 months to save, I only need to stake 60% of what I own to the taxman in October to earn what I need. By doing this I can avoid the stresses of the taxes as I will have the money put aside already and a separate fund to pay my taxes.

What do you think of this plan? What yield farming are you doing? What do you think of Yeld? I look forward to reading your comments.