XFai Farming: Short Term Benefit, Medium Term Profit, and Long Term Infinity Gains
XFai’s approach to easy, one-click farming has contributed to the mass success of making liquidity farming more accessible to the public, while eliminating issues such as high gas fee, slippage, and impermanent loss. The successful reach to the retail investors have encouraged the mass to participate in liquidity farming for the first time, reaching the peak TVL of above 21 million USD. As the end of stage 1 of the XFai Liquidity Generation Event (LGE) is soon coming to a close, here are the various ways all XFai farmers can profit — from short term to medium term, and to long term.
The XPonential Short Term Benefit
The XFai LGE has been designed to lower the entry risk for investors. By maintaining an initial 50% to 50% balance between the stablecoin (USDT or USDC) and XFIT upon entry during stage 1 of the LGE, new farmers are automatically hedging a part of their entry into a new token.
The current price of XFIT that is undeniably lower than the potential price once the LGE reaches stage 2, newly incoming liquidity farmers are able to secure significantly more LP tokens compared to coming in at a higher price during stage 2 of the LGE. More LP tokens secure the new liquidity farmers higher portion of the entire drip rate, allowing them to earn more of the triple-digit APR on a daily basis.
The 50% to 50% ratio between stablecoin and XFIT during stage 1 of the XFai LGE is a unique benefit the liquidity farmers can experience only during this stage. Beyond hedging initial risks, the gained LP value increases once the price increase is larger in comparison to being involved during stage 2 of the XFai LGE. Therefore, new farmers can benefit significantly from higher LP value increase.
The XFold Medium Term Profit
Since the launch of the XFai LGE, the initial demand witnessed has been massive. During the initial launch, incoming liquidity farmers took nearly 4% of the global Ethereum network demand, with the demand taking up as much as above 30% of certain Ethereum blocks. While this level of demand is nearly unprecedented, it is for all the right reasons.
Savvy investors were able to see the immediate and medium-term profit of becoming a liquidity farmer with XFai. The optimized price of XFIT during stage 1 has not only given them a successful entry point that maximizes return while minimizing impermanent loss, the new wave of incoming liquidity farmers is bound to further increase the TVL, and thus create a more solid stability in price during stage 1 of the LGE. Stable price allows the already-involved liquidity farmers to reap in the benefits.
Farmers already involved with XFai LGE can also benefit from the upcoming chain expansion of XFai. A snapshot to be taken at the end of stage 1 of the XFai LGE will accurately measure each liquidity farmer’s contribution in the LGE stage 1, and reward them with free token airdrop at the time of new chain expansion. This is bound to significantly increase the ROI of the current liquidity farmers.
The XFinity Long Term Gain
Impressive long term gains can only be sustainable if it is well-hedged. There is nothing better than turning the current, increasing profits into a compoundable, impressive long term profit. While this may be a dream for many investors, XFai is well on course to make this an easy-to-reach reality for the liquidity farmers involved.
XFai is one of the unique projects with built-in technology that generates revenue in all market conditions, whether bullish or bearish. The DEX Liquidity Oracle (DLO) and other technology currently in stealth development are geared to return significant, consistent revenue for XFai. These future revenue streams are committed to buying the XFIT token from the market, staking it as liquidity, and burning the claim on that liquidity, the LP token. This forever locks in liquidity, making the XFai LP token and XFIT itself one of the strongest collateral options for lending protocols in the future.
With the XFai LP token and XFIT being highly sought after in a form of collateral, XFai farmers who hold the LP token are able to use the LP token in DeFi lending and borrowing markets to earn further profit on their LP token while still receiving profits from the triple-digit APR. XFai is currently in talks with renowned DeFi platforms who are showing a large appetite for accepting XFai LP tokens as collateral.
Beneficial for All Farmers — New and Existing
With stage 1 of the XFai LGE soon coming to a conclusion, the price optimization feature of the Potentializer will be turned off. This is bound to translate the new farmers coming in during stage 2 of the LGE into positive price pressure, along with speculative traders buying directly from Uniswap.
Compiling the data from last week of the XFai LGE, an average of around 500,000 USD of demand has been steadily entering XFai on a daily basis. Once the stage 1 of LGE has reached its conclusion and stage 2 has been turned on, this 500K USD per day of demand is expected to be directly reflected in the growth of XFIT.
XFai extends its invitation to the new liquidity farmers to take advantage of the current stage 1 of the XFai LGE, and encourages the current farmers to continue taking advantage of their position to increase their profits.
Happy farming!
About XFai
XFai develops tooling for the DeFi space, graphing it to build game-changing products. The XFai DLO is set to invite mid and small-cap tokens to start earning APY on their token holdings, while the XFai LGE is set to become industry-first in providing a more efficient, transparent, and fair way for everyone to get involved at an early stage. The LGE for XFai’s native token, XFIT, was launched on 16th April 2021. We invite everyone to join the DeFi revolution, spearheaded by XFai.
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