Honeycomb: how to stake and farm tutorial, benefits and risks

🐝 Community Learning
#55

Hey guys, I’ve noticed in some posts on this forum that the honeyswap FE is referred to with https://uniswap.1hive.org/ , which still works btw but it would be better to set the redirect to honeyswap.org

Great Tutorial Harry !!

2 Likes
#56

Did anyone have issue with metamask on mobile? Everytime I open honeyswap.org, I can’t find if my pool was there!

4 Likes
#57

metamask mobile was buggy and even in computer you can’t see your pool sometimes, you need to import it.

3 Likes
#58

I felt the same issue and someone suggested me to metamask browser extension. So I did it, sometimes it also feels buggy.

#59

hy. y did not understand. you get HNY or you get LP XDAY-HNY tokens? thank you

#60

If you stake your LP XDAY-HNY tokens at the farm you will get HNY tokens.

2 Likes
Got my first drip of Honey out of the faucet!
#61

Yes, as Berserk said, this is the full process:

  • You pool HNY and xDai: you get LP tokens
  • You stake the LP tokens in the farm -> you farm (get) pure HNY.
  • If you want (and you should) you can then sell half of your harvest, pool it again, stake again. This is called compounding, I am writing an article about this.
  • In the meantime your LP tokens should rise in value due to their share in swap fees from Honeyswap.
3 Likes
#62

Hi fellow bees,

If I understand correctly, these are some starter points for people to check if it’s interesting for them to farm:

  • Yield farming is only profitable if you’re willing to put a significant sum of money to work;
  • Liquidity pools are configured between two assets in a 50-50 ratio, so you need to own and provide an equal amount of value of both tokens in the pool;
  • Yield farming is not without risk, most likely you are not going to get the same amount of tokens back. This can go both ways: depending on price action and your stake in the pool, your total value of tokens in the pool can both increase or decrease.
  • Yield farming is most profitable when you expect the pricing of the pair not to be volatile (e.g. ranging for a while).
  • In such environments liquidity providers can do well by earning passive income from liquidity provision fees and additional incentive schemes.

Correct me if I’m wrong.

#63

Hi @tvdvelden,

Thanks for your reply. Mostly you are correct, but here are some corrections and notes:

Nope. While this might be true for ETH mainnet farms, due to the high transaction fees (especially staking and pooling), it is not true for our xDai Honeycomb farm. It levels the playing field and $100 in the farm will generate the same net % in rewards as $10k, as the total fees willl be less than 0.00001 in both cases.

Yes, you need to LP 50/50. But it’s ok if you only have one (or zero) of the pair as you can easily swap half of what you have for the half that you need on honeyswap.

This is correct and important. Unless one of the tokens goes completely nuts (i.e. x1000 such as YFI) or breaks completely down (value down to zero), then the risk is negligible. Normally the longer you stay in a pool/farm, the better the return as you also accrue pool fees. There will always be impermanent loss (IL), but that is compared to a perfect 100% holding and selling the exact top strategy, which in practice is not possible.

Yes, then you at least minimize the IL. But of course, it also depends on:

  • The APY of your farm. Even a volatile pair can award more than a stable coin pair. This of course depends on the funding, how many others are in the same farm etc.
  • The activity in the pool, i.e. how many trade the pair you supplied liquidity to. More activity = more income from fees that might outweigh (or not) the IL.

Yes. And it is even kind of a hedge against big price movements, as long as neither of the pool sides goes crazy in any direction. If one coin goes to zero, you lose everything.

^ Not investment advice, please DYOR

5 Likes
#64

Thanks for your input @Harry. Very much appreciated!

1 Like
#65

Mobile always get bug

#66

Awesome man a lots of information I was searching for this. Can we make video about this and post some users might need video tutorials.

#67

This is awesome. Thank you so much for putting this together!

#68

just wondering… should we be harvesting the Hny as frequently or can we just leave it there until we are done with farming?
what does “Time remaining in farming period” means? - what action should we be taking?

#69

better reinvest frequently. no benefit in holding longer.
time remaining is time until there are still rewards in that farm.

1 Like
#70

Very helpful topic not only about honey but also general knowledge regarding farming, staking as well as risk assessment. Many thanks and appreciated @Harry for your hardwork.

1 Like
#71

Again! what an awesome guide, it made my life a whole lot easier. I learned almost if not everything just by reading everything in this forum.

2 Likes
#72
#73

what happened to this platform, staking is not possible anymore and then the site disappeared? Is there a tutorial explain all these changes?

1 Like
#74

Yeah the farming platform has changed to this:
https://1hive.io/#/farm
It’s simple to use. You have to first add liquidity then you can stake.
And also if you change your metamask network to ploygon, we have new farm there(launch on July 1st) and you can get pComb rewards.

1 Like