First and foremost, this is an experiment that I have to definitely provide a caveat that the results pertained only to my experience of farming the POLIS-USDC pair during the period from Tuesday15th February 2022 - Tuesday 1st March 2022.
Second, in PDN farming, it is likely that one has to switch from one token pair to another after a period of time as the Decentralized Exchanges (DEXs) reduce or stop altogether the Liquidity Pool (LP) incentives. These incentives are in the form of token emissions that make up the farming yield. As the farming yield for a token pair falls, deploying it for PDN may no longer make sense because the overall yield may be too low to be attractive, or even become negative (i.e. loss-making) if the yield is less than the borrowing interest and accumulated Impermanent Loss (IL) caused by the price movements of the underlying Non-Stable Asset (NSA).
Disclaimer: This is not investment or financial advice, but a sharing of my adventures and learnings in crypto space, where I conduct various experiments with different tokens and protocols across different blockchains.
Objective
For the purpose of Leverage Yield Farming (LYF) on the Solana blockchain, the 2 most important DEXs are Orca and Raydium, as their farms are the ones that Francium and Tulip are composing their LYF farms upon.
In the course of my PDN farming, I had noticed that with the same token pairs, the Orca ones…
