So I first began crypto back in August, and since have been trying to absorb as much knowledge as I can while simultaneously trying to make smart trading decisions along the way to take advantage of this bull market til the end.
While I've gotten a base knowledge so far, it is blatantly obvious to me that I still have no grasp of the current state of defi and how to use it to my advantage when going into LP's.
To best see what was out there and so spread out my risk, in September I split my bag into several blockchains to begin exploring what their defi had to offer. These were: BTC, ETH, SOL, AVAX, DOT, ADA, ATOM, LUNA, HBAR
I've entered a few on Solana, mostly with 1 stable coin in the pair so I can figure out IL better, and have now begun to do DVPN /OSMO on cosmos because I've just seen them move together and figured I'd just throw my staking rewards at it to see what happens..
My AVAX bag was basically wiped out by this project DREGG (now DCAU) which in hindsight must be the only shit project on the chain because now I'm finding out about how good TIME would have been and the whole nICE/sSpell/MIM ecosystem turning into defi2. 0 along with things like Klima and OHM which again now are driving me to try and understand LP's, PLP's, and the emerging space even more now.
I'm noticing some of my choices weren't the best, please feel free to call them out lol, and am looking to trade up into more defi friendly blockchains to make the most of this bull run and when the bottom of the market hit next year my future.
What I'm wondering is, how do you choose your block chain, protocol, and eventually liquidity pool pair to provide to?
Like, how do you see which tokens gain/lose liquidity in sync to yield the lowest rate of IL? Ive noticed with at least 1 stable coin in the pair its about timing your entry/exit, does the same apply for token pairs? What TVL numbers do you look at for a certain protocol/pool, and how does this influence the rewards that you see from it as opposed to a competitor? Is there an ideal block chain I should be looking at like FTM or something else I haven't mentioned?
Looking for any and all insights into defi, and hugely open to criticism on what I'm doing wrong hahaha.
TL:DR How do you see which tokens gain/lose liquidity in sync to yield the lowest rate of IL?