How to manage your (Crypto Farming) rewards (part 3)
This is the third part of a series of articles around crypto farming, you can find the first article (with links to all parts) here:
Total profit formula
When you start to add liquidity into pools you will get into what is called IL (Impermanent Loss) and you will get farming rewards, your total profit is:
Total farming profit = IL (Impermant Loss) + farmed tokens
Let’s start today with Public Mint farming as an example:
- First you add liquidity into mint/eth pool (click here)
- Then you stake your tokens
https://stake.publicmint.com/pools/MINT-ETH%20UNI-V2%20LP
Cool, now you are faming MINT, but…
How much profit I’m making?
To track your liquidity + farming performance you should use tools like apy vision
To track your performance you have to open apy.vision, then you can paste your wallet address or link with your wallet (for example MetaMask)
You will see the next details for each pool you added liquidity:
Note: to compute your farmed rewards you need to click on “More Info”
Let’s analyse previous example:
- Initial amount: 11363 MINT / 6.25 ETH
- Current amount: 9006 MINT / 8.11 ETH
- At current price it means an Impermanent Loss of $950 (from liquidity)
- Farmed: 2K MINT (at current price 2K MINT * 1.6 = $3200)
- Total profit = $3200 (from farming) - $950 = $2250
How to manage this on your coin tracker?
There is a simple trick and is to add 2 transactions on your tracker:
- One will be a buy/sell order representing the current holding
- One with the farming rewards (buy order with price = 0)
Let’s cover with previous example:
Example using Delta:
- we register the IL like a sell order (if the IL is positive we do a buy order)
- we register a buy order with farmed tokens with price = 0
- Then your portfolio will reflect exactly your position
You can follow me on Twitter: @crypt_stylo
