AVAX Farm

Estimated returns: 63.05% as of Oct 2021

Investing Approach

This strategy has the same approaches as the above-listed strategies but it replaces DEXToken with AVAX. Compared to AVAX, DEXToken is more volatile and if you aren’t looking at taking part in any volatility token in Avalanche but believe in the growth of the Avalanche blockchain, this is the perfect strategy for you.

Even though the return is lower than the other strategies above, it is still better than the ETH-Stablecoin pools on Ethereum. And we all know compared to Avalanche performance and growth rate, AVAX is still very undervalued.

Allocations

• AVAX 50%

• DAI 25% (DAI-AVAX pair)

• USDC 22.5% (USDC-AVAX pair)

• USDT 2.5% (USDT-AVAX pair)

*Stablecoins will be preferably allocated as 50% of the funds.

Portfolio Growth

The incentives a user earns from yield farming these pairs would be compounded automatically by DAOventures smart contracts. This would ensure that the portfolio is rebalanced so that the strategy can reset back to its standard allocations as shown above. This will maintain a balanced allocation as a result.

Risks

A standard risk when it comes to providing liquidity on decentralized exchanges is Impermanent loss. To know more about impermanent loss, you can check this article, made by Binance Academy.

Fees

Besides the standard 0.5%-1% deposit fees and 20% profit sharing fees (see here for more details), there is a 10% fee on the yield farmed which is used to pay the gas fees associated with harvesting rewards and depositing LPs.