PSA: Don’t Chase High APY LP Yields (Cronos Edition)

So far I have not had nearly the advertized APY “rewards” from any of the following Liquidity Pools:

https://app.cronaswap.org/farms

These numbers were even higher yesterday and their token lost 50% of value overnight

https://vvs.finance/farms

This was over 3000% earlier in the day

I think Cronos is too new and people who got in on day zero doubled (or more) their money overnight and as early as I am, I am still a few days late to the party. These first-movers are taking profit already and driving the price of the tokens in the pool down. This exacerbates impermanent loss, so I suppose I will stay all-in and ride it out. However, unless you are first in line, it is much less risky to not chase these high yields.

Continue reading PSA: Don’t Chase High APY LP Yields (Cronos Edition)