BFG farming has launched yesterday and it sure was exciting. A nice return is offered and BFG price spiked up because people didn't want to wait on their withdrawals and bought additional BFG to stake in the farm.
The telegram group was full of people panicking about their withdrawals and it was really quite the same as right after the listing; people not understanding market mechanics and yield farming and thinking they are missing out because it takes some time to withdraw BFG from the platform. The yield is determined by the total amount of BFG that is available for the farm rewards and thus is also tied to the total amount of BFG staked in the farm. So it's only logical you'll see some crazy APR right at the start, when there is little to no BFG in the pool yet. And it is also normal that the APR comes down hard once BFG starts flowing into the pool.
You can see the APR versus the amount of BFG being staked in the farm in the chart below;
So the farm is still yielding a nice 432% at this moment. It will come down more surely, but it will be higher than the dividend APR for sure for quite some time.
Dividend payments
Unfortunately the dividend payments were down today in $ value. Mostly due to the decline in the cryptomarket as a whole.
However, due to the outflow of BFG to the farming pool, the $ / BFG was up! It's $0.0731 / 1k BFG today.
With the increase in price of BFG, the APR for staking BFG on the Betfury platform for dividends is down to 81.93%
Staking or farming?
So should you be staking or farming?
Well, 432% > 82% so at this moment it's quite clear you should be farming.
If this will make more people withdraw BFG and put it in the farm remains to be seen, but some balancing should be expected.
However, looking at the yield chart above I think it's safe to assume it will take a whole lot more withdrawals to get the APR down to staking levels.
So for now I'm happily farming.
