Yield Farming AMPL and ETH
So you have earned some Ampleforth (AMPL) and Ethereum (ETH) on Publish0x - now what? Well you can leave it on the Publish0x or move it to a wallet. Those are both OK options if you don't like to put your crypto to work for you. But what if you want to make all that hard earned crypto work for you?
The good news is you have plenty of options, especially with Ethereum, the world's second largest crypto as ranked by market capitalization. Ampleforth is a little trickier as it ranks closer to the 500 mark in terms of market cap and isn't as well known or have a huge number of DAPPs built upon it like ETH. Let's do a little further dive into these two coins and what you can do with them to grow your holdings.
I use yield farming to build up the number of coins and tokens I hold. This can be done as simple as just staking your coins or as complex as providing liquidity pairs on a decentralized exchange.
Ethereum
Ethereum (ETH)is the biggest "blue chip" cryptocurrency coin after Bitcoin. Some predict it may overtake Bitcoin someday but regardless it appears it will be around for the long-haul. The coin is a global, open-source platform for decentralized applications or DAPPs. Ethereum helped bring smart contracts into the world of crypto. A smart contract is a programmable contract that allows two counterparties to set conditions of transactions without needing to "trust" a third party for the execution of the contract. Ethereum recently announced the merger phase of its crucial transition from proof-of-work (PoW) mining consensus to proof-of-stake (PoS) will take place on September 19th and has seen a nice price jump ever since.
Ampleforth
Ampleforth (AMPL) is a digital-asset-protocol for smart commodity-money with a unique elastic supply protocol built on the Ethereum Network. With a general target price of $1, AMPL supply expands and shrinks every 24 hours in response to it’s price deviating from it's target so it acts as a stablecoin even though it is not. Ampleforth is not backed by any fiat and its value is not supported by a crypto-pegged currency.
Yield Farming Ampleforth
The simplest way to yield farm AMPL is via the Ampleforth Geyser set up by the Ampleforth DOA itself. Here you can simply "stake" AMPL to earn a yield which currently is around 75% APY using the ETH Beehive V5 Uniswap ETH-AMPL pairing. There are currently three active Geysers available on the dropdown including:
ETH Beehive V5 (ETH-AMPL) at 75.04% and $330K in deposits
ETH Trinity V3 (WBTC-WETH-WAMP) at 175.80% with $75K in deposits
ETH Slendid Pilot (AAVE aAMPL) at 5.34% with $307K in deposits
Certik, a blockchain auditing company, has approved Geyser with a 98% passing score. Nexus sponsors insurance coverage for the project’s users
Ampleforth can be set up as a Liquidity Pool (LP) token on a number of protocols including Uniswap, the largest decentralized exchange or DEX, where it is paired with wrapped Ethereum (WETH). This allows you to pair both your earned cryptos on Publish0x and put them to work for you. SushiSwap also offers a WETH-EMP liquidity pool.
For a detailed video look at how to yield farm WETH-AMPL on Uniswap, although a little dated, please check out the video below.
Yield Farming Ethereum
Yield Farming Ethereum has limitless possibilities in terms of the various LP token pairings on any Ethereum network decentralized exchange. On UniSwap alone, I found around 200 coins/tokens you can pair with ETH and that doesn't include imported tokens. You can pair ETH with a stablecoin like USDC or another blue chip coin like (wrapped) Bitcoin. If you already have another coin to pair with Ethereum, simply create the LP coins and stake them on the DEX of your choice. If not, you can always "swap" have your ETH value for equal value in another coin or token before providing liquidity by pairing them together.
Your risk tolerance and desired return come into play when yield farming, so if you haven't do so before make sure you do plenty of research before stepping into this fascinating financial world within crypto. There are tons of DEX's to choose from and you can find 245 of them listed on CoinGecko but you will have to select one on the Ethereum Network to yield farm Ethereum or Ampleforth.
I prefer to yield farm with tokens pegged to a coin to increase the correlation of price movement between the two coins and limit potential impermanent loss. In the case of Ethereum there are a few choices buy I prefer the EMP Money native token "EMP" and yield farm both on their platform and in "autovaults" that provide returns in the form of additional LP tokens. Autovalults are great way to build up your Ethereum holdings and EMP Money offers a number of options here including Beefy Finance, YieldWolf and the one I'm currently using which is Magik Farm. Here you just stake your LP tokens and they grow automatically, nothing needs to be done on your side. The site also offers straight Ethereum staking with a solid 100% APY return, but only opens up the staking every three months (the length of the stake period). You can learn more about the EMP Money platform in my article here.
Conclusion
Sure you can simply hold your ETH and AMPL coins and wait for the price to jump. That may not be a bad strategy for Ethereum which is a coin I seeing doing well in the long-run. As for Ampleforth, well it is likely to just stick around the one dollar mark and with inflation the way it is you are just losing purchasing power if you simply hold AMPL in your wallet.
While I'm a buy and hold investor when it comes to stocks, with crypto I like to be a little more active. Well, make that a lot more active. I don't just want a nice bag, I want an ever increasing bag and yield farming is my primary strategy to make that happen. Despite all the hard work in writing articles on Publish0x, I view the rewards as virtually free money. Why not have a little fun with the ETH and AMPL earned, making even more of it on the side while increasing your crypto knowledge along the way?