How to Automate Your Yield Farming With vFat — Transcript

Full transcript

1. 0:00What's up guys? In this video I will
2. 0:02show you guys how to yield farm using
3. 0:04Vfat. Vfat is a position management
4. 0:07platform where it makes it easier to
5. 0:09manage multiple positions if you're
6. 0:12yield farming a lot of different pairs.
7. 0:14But before we dive in, let me just show
8. 0:16you guys my portfolio. If you're new
9. 0:18here, my name is Richard. My channel is
10. 0:20mainly about yield farming because I
11. 0:22find that yield farming is one of the
12. 0:24most profitable thing that I found in
13. 0:26crypto. If you guys look at my current
14. 0:29open positions, I'm sitting in a seven
15. 0:31Ethereum profit while earning some
16. 0:34really nice fees here. My closed
17. 0:36position totals to 8.6 Ethereum profit.
18. 0:39If you add those two numbers together,
19. 0:41it's roughly 16 Ethereum profit. And I
20. 0:44also have this wallet set up where my
21. 0:46goal is not to make an Ethereum profit,
22. 0:48but a US dollar profit while earning
23. 0:51some really nice cash flow. And if you
24. 0:53look at my combined yield farming
25. 0:55wallet, you can see I'm earning a
26. 0:57roughly 50% APR on my capital right now,
27. 1:00beating impermanent loss pretty
28. 1:01consistently here. If you add all of my
29. 1:04closed positions, I've had a pretty good
30. 1:07track record so far compared to just
31. 1:09holding in the market. So hopefully this
32. 1:11channel I would help you guys become a
33. 1:13better yield farmer. But again, nothing
34. 1:15I say is financial advice. Please do
35. 1:18your own research before making any
36. 1:19investment decision. And sorry about the
37. 1:22voice, I'm slightly under the weather.
38. 1:24But hopefully this video would help you
39. 1:26guys out a lot. So if we pull up Vfat
40. 1:28here, if we click on this yield tab, we
41. 1:31could go to this pool tab where we could
42. 1:34see a bunch of different liquidity pool
43. 1:36that we could deposit into. And if I
44. 1:38already am in a position, for example,
45. 1:41then I also see this as well. So I could
46. 1:43deposit my liquidity pool NFT if I want
47. 1:47Vfat to manage my position. It doesn't
48. 1:49support all chains and sometimes it
49. 1:51misses some assets. But you guys could
50. 1:54go to the setting tab here and look for
51. 1:57the chains that you want to yield farm
52. 1:59on, as well as the different protocols
53. 2:01that you want to yield farm with. And
54. 2:03you can search by asset as well. Let's
55. 2:05say I want to do only Ethereum to US
56. 2:08dollar pairs, then it pulls up a bunch
57. 2:11of different pairs that I could analyze.
58. 2:13And this APR number might not be
59. 2:15accurate because I've actually did like
60. 2:18an analysis on a lot of these pools. And
61. 2:20so the actual APR could be very
62. 2:22different from what it shows here, but
63. 2:24it just gives you a very nice overview
64. 2:26of the available pools, as well as give
65. 2:29you the ability to deposit very easily.
66. 2:32And I could mark as favorite as well if
67. 2:34there's a pool that I like. For example,
68. 2:36I was using this Ethereum to USDC pool
69. 2:39on Arbitrum for quite a while. So I
70. 2:42could bookmark it, and I could look at
71. 2:44all of these details here. For example,
72. 2:46the last 7 days worth of fees, what's
73. 2:48the current total value locked, and then
74. 2:50deposit my position there. So for a
75. 2:52crypto to stable pool, typically I want
76. 2:55to use the stable coin as my quote asset
77. 2:58because I want to see the Ethereum price
78. 3:00in stable coin terms, right? In US
79. 3:03dollar terms. And I could change my
80. 3:04range here directly, right? Minus and
81. 3:07plus.
82. 3:08It's in percentage terms. So if it's
83. 3:10minus 50%, then it's taking this current
84. 3:13price minus 50%, and this is my bottom
85. 3:16range. And if I want the top range to be
86. 3:1950% wide as well, then this is the rough
87. 3:22range that I would get. I go over
88. 3:24exactly how you guys can set your range
89. 3:27in other videos on my channel, so be
90. 3:29sure to look at that. But if I want to
91. 3:31be a longer-term investor, I'm not
92. 3:34really going to set a tight range to try
93. 3:37to basically squeeze the range and get
94. 3:39the maximum APR and kind of chase the
95. 3:42range as the price moves. For example,
96. 3:44some people set pretty tight ranges here
97. 3:47on like their liquidity pools, and then
98. 3:49they earn a lot of fees when the price
99. 3:51is in range, right? But when there's a
100. 3:53big move in the market, which it often
101. 3:56happens, like what we're seeing
102. 3:57recently, you missed out on a lot of the
103. 3:59pump, and then you're basically forced
104. 4:01to rebalance. When you rebalance, you
105. 4:04lock in a ton of impermanent loss.
106. 4:06You're buying a lot of Ethereum at this
107. 4:08higher price. When Ethereum's price
108. 4:10draws down, you're fully into Ethereum
109. 4:13again, and then you lose a bunch of
110. 4:15money. And then people basically just
111. 4:17keep chasing the range down, rebalancing
112. 4:20down, down, down, down until they reach
113. 4:22the bottom here, and then when the price
114. 4:24rips back up again, then they would lose
115. 4:26money, right? So, I want to avoid that,
116. 4:29and I want typically have a market bias
117. 4:32on where this price is going to go. For
118. 4:34example, if I'm comfortable taking
119. 4:36profit on my Ethereum, I might be
120. 4:39selling some at this current price and
121. 4:41get into a more bullish liquidity pool,
122. 4:44right? Let's say the bottom range starts
123. 4:46at around 2300. I could do that, and
124. 4:49then the upper range could be all the
125. 4:52way at $6,000, or even higher at
126. 4:55$10,000, for example. If I believe that
127. 4:58Ethereum's price is going to trend
128. 5:00upward for the next 6 to 12 months, this
129. 5:03is a possible range that I could get
130. 5:05into. And before you guys actually get
131. 5:07into the position, be sure to run the
132. 5:10simulations on like how much fees you
133. 5:13could generate, what's the impermanent
134. 5:15loss, and what's the total profit loss
135. 5:17you can make when the prices go up. So,
136. 5:20you basically want to make sure you know
137. 5:22all of that beforehand, and I go over a
138. 5:25lot of that in my YouTube channel. Like
139. 5:27for example, how to calculate
140. 5:29impermanent loss, how to set ranges and
141. 5:32stuff like that. So, be sure to learn
142. 5:34more about that. But for this video, I
143. 5:36just want to demo VFAT and how to use
144. 5:39it. For example, if I want to set the
145. 5:41range near what I was saying, right?
146. 5:43Let's adjust this to maybe minus 10%.
147. 5:46So, 10% is 2500. It's a little bit
148. 5:49tighter than what I would like. So,
149. 5:51maybe I would drop down to minus 20,
150. 5:53roughly $2300 mark, like what we were
151. 5:56looking at right here, right? And the
152. 5:59price should be supported by this blue
153. 6:0120-week exponential moving average,
154. 6:04which is this blue line here. So, I
155. 6:06could set my range to be slightly lower
156. 6:08than that if I want a bullish range to
157. 6:11capture the upside. And the max price I
158. 6:13could play with the numbers a little bit
159. 6:15here. And you guys can choose which
160. 6:17token you want to send in, right? For
161. 6:19example, if I want to deposit Ethereum,
162. 6:22I could do that. And I could deposit
163. 6:24however amount of Ethereum that I want.
164. 6:28Let's do around 0.005 for this example.
165. 6:31I'm just going to use a small amount for
166. 6:33this example as a demo. And I could
167. 6:36basically choose if I want automated
168. 6:38rebalancing or automated harvesting and
169. 6:42auto compounding. So, if I want
170. 6:44automated rebalancing, it shows a
171. 6:46warning here that I would need at least
172. 6:48$2,000 in capital to make it more
173. 6:51feasible. So, with a very small amount,
174. 6:54I wouldn't be using this. And you could
175. 6:56choose if you want to compound your
176. 6:58rewards or harvest your rewards
177. 7:00separately when you rebalance. And then
178. 7:03if I tick this on, my reward would be
179. 7:05harvested separately when you rebalance.
180. 7:09And then I could also choose if I want
181. 7:11to convert my reward into Ethereum,
182. 7:13USDC, or whatever tokens I'm bullish on
183. 7:16as well. Or turn it off if you just want
184. 7:18to collect whatever Ethereum and USDC
185. 7:21you earn. And here I could set the
186. 7:24conditions where my pools would
187. 7:25rebalance. And this buffer basically
188. 7:28means that it would take place once the
189. 7:30price reaches that range. So, lower
190. 7:33buffer margin, let's say I put like 10%.
191. 7:36Then when the price is actually reaches
192. 7:38like this $2,000 something dollars mark,
193. 7:41then my pool would rebalance once it has
194. 7:43dropped more than 10% out of range,
195. 7:46right? But I could also put like a
196. 7:49negative number here. Let's say negative
197. 7:5110. If I want to rebalance a little bit
198. 7:54earlier before my pool gets out of
199. 7:56range. And I could do the same with the
200. 7:58upper, right? Like 10% on the upper if
201. 8:01Ethereum breaks out to the top side, I
202. 8:03could choose to rebalance. Or I could
203. 8:06add a buffer of minus 10% here. This is
204. 8:09typically what automated rebalancing
205. 8:11tools do. They have like a negative
206. 8:14buffer here. For example, if Ethereum's
207. 8:16price goes to 2500, it would trigger a
208. 8:19rebalance on the lower side, and then my
209. 8:22pool would be basically rebalanced down.
210. 8:24So, it's going to set like the same
211. 8:26parameters, minus 20%, and then a
212. 8:29increase of roughly 128%
213. 8:32from the new price. Let's say it drops
214. 8:34to 2520,
215. 8:36then it would shift the range there,
216. 8:38right? Based on this parameter. And then
217. 8:41you can set a cutoff price too. Like,
218. 8:43let's say you don't want to keep
219. 8:45rebalancing downwards, you can set a
220. 8:47cutoff point. Let's say I don't want to
221. 8:49keep rebalancing down and essentially
222. 8:51selling my Ethereum when Ethereum drops
223. 8:54below 2000, then I could set that as
224. 8:57well. So, these are all parameters that
225. 8:59you can set, but I personally don't use
226. 9:02a lot of automated rebalancing because
227. 9:04when you guys rebalance, you actually
228. 9:06lock in a lot of impermanent loss if
229. 9:09you're not doing it properly, and I
230. 9:11think it should be more of a deliberate
231. 9:13process rather than like an automated
232. 9:16thing. And automated pools typically get
233. 9:19like shredded and destroyed by
234. 9:21impermanent loss. So, if I take this off
235. 9:23here, I could focus on these other ones.
236. 9:26And I will show you guys these like
237. 9:28automated vaults, for example, on Beefy
238. 9:30or Gamma right now. So, this is the
239. 9:33exact pair that we were looking at, but
240. 9:35it's on SushiSwap on Arbitrum. If we
241. 9:38look at Ethereum's price here, you can
242. 9:40see roughly 1 year ago in July 23rd,
243. 9:442024, Ethereum's price was trading at
244. 9:473479. Currently, Ethereum is trading at
245. 9:502794.
246. 9:52So, let's see what's the drawdown,
247. 9:54right? Let's say what's the total loss
248. 9:57if you deposited like roughly 1 year ago
249. 10:00compared to what your Ethereum would be
250. 10:02worth right now, assuming you didn't add
251. 10:04any position when like the prices is low
252. 10:07or sell some when the prices are high,
253. 10:09right? So, what we can do is 3479
254. 10:13- 2794.
255. 10:15So, 3479
256. 10:182794.
257. 10:20So, that's our total unrealized loss if
258. 10:22we're still sitting in Ethereum. And
259. 10:24then if we divide by our initial
260. 10:26investment 1 year ago at 3479, you're
261. 10:29down roughly 20%, right? 19.6%
262. 10:33not too horrible, especially if you are
263. 10:36bullish on Ethereum and you believe the
264. 10:38price is going to rise over time. But if
265. 10:41we look at this price, it's basically
266. 10:43how much your liquidity pool would be
267. 10:45worth if you were yield farming with
268. 10:47this automated tool. So, you can see a
269. 10:50huge decline here. If we look at the
270. 10:52beginning price, it's around 1 trillion
271. 10:55compared to now, it's around 526
272. 10:59billion. So, you're really you're down
273. 11:01more than 40%, roughly 47% compared to
274. 11:05being down only 20%. This pool is
275. 11:08actually really bad. It's
276. 11:10underperforming holding by quite a lot.
277. 11:13And you can see a bunch of people are
278. 11:15actually still in this pool, like almost
279. 11:18a million dollars that's deposited in
280. 11:20Beefy, and their capital is basically
281. 11:23going to zero or decreasing over time.
282. 11:26Because again, they're chasing the range
283. 11:28like what I just talked about earlier
284. 11:30where it's like rebalancing very
285. 11:32aggressively with very tight ranges.
286. 11:35Sometimes the range becomes a little bit
287. 11:37wider, but the range overall is still
288. 11:40very tight. So, that's how most yield
289. 11:42farmers play this game of yield farming,
290. 11:45and then they end up with a loss just
291. 11:47because they're chasing the range and
292. 11:49not using the right strategy. So,
293. 11:51automated rebalancing is definitely not
294. 11:54a good thing in my opinion, and you
295. 11:57should avoid it if possible. And let's
296. 12:00look at this Uniswap pool what we were
297. 12:02looking at. If we go back to Beefy here,
298. 12:04you can see the total value locked is
299. 12:06around 58 million, roughly the same as
300. 12:09this total value locked here, so it's
301. 12:11probably the same pool or very similar
302. 12:14pool, and the price of Ethereum loss is
303. 12:16roughly the same as what we were
304. 12:18computing. This pool started a little
305. 12:20bit earlier, so 3559
306. 12:23versus 2794. Now, if we calculate the
307. 12:26loss, 3559 - 2794 right now, it's a $765
308. 12:32loss
309. 12:33divided by our initial investment at
310. 12:363559,
311. 12:37you would be down 22% roughly, right? If
312. 12:41you were to buy Ethereum roughly 1 years
313. 12:43ago. But, if we look at this price chart
314. 12:45again, it's just completely horrible,
315. 12:47right? You start here at 972 billion,
316. 12:51and it has moved all the way down to
317. 12:53668. So, if we take the like front three
318. 12:57number, right? 972
319. 13:00668,
320. 13:02304 / 972. So, your loss would have been
321. 13:0731% if you were yield farming rather
322. 13:10than just holding your Ethereum or
323. 13:13staking your Ethereum. So, over a year,
324. 13:16you suffered a 31% loss while taking on
325. 13:19much more risk for no reason, right?
326. 13:21Because again, these automated tools are
327. 13:24basically chasing the ranges, and it's
328. 13:26not profitable at all. So, this APY is
329. 13:30actually like more harmful than good.
330. 13:32People that deposited this like almost 2
331. 13:35million dollars in here are basically
332. 13:37just losing their capital over time,
333. 13:40especially when the market is really
334. 13:42volatile. If the market is really slow
335. 13:44moving, like if it's just trending up
336. 13:46over time very very slowly, then I could
337. 13:50see this
338. 13:51strategy like making sense. But, for
339. 13:53most pools, even if it's pulling like a
340. 13:56ton of APR, right? If we scroll here,
341. 13:59the average APR is roughly like 149%
342. 14:03over 1 year, but you're still at a huge
343. 14:05net loss compared to holding because
344. 14:08again, these automated tools are
345. 14:09actually squeezing the range, and it's
346. 14:12actually losing a lot of investor money.
347. 14:14So, if you guys are starting out, I
348. 14:16would encourage a wider range strategy.
349. 14:19Take off this automated rebalancing. You
350. 14:22don't need it. If anything, you could
351. 14:24use this automated reward, which is much
352. 14:26better, and you could choose to auto
353. 14:28compound the fees. So, auto compounding,
354. 14:31what it does is it harvests your fees,
355. 14:33and then make any swaps necessary to
356. 14:36basically keep growing your capital
357. 14:38inside the pool, right? And auto
358. 14:40compounding could make sense if you
359. 14:42don't care that much about cash flow.
360. 14:44You just want to grow your capital,
361. 14:46and you don't mind where the price is
362. 14:48going as long as you're bullish on both
363. 14:51assets. And this probably makes more
364. 14:52sense for like crypto-to-crypto pools if
365. 14:55you're trying to accumulate both assets,
366. 14:57rather than crypto-to-stable pool, where
367. 15:00you might not want to compound all the
368. 15:01time, right? So, if you don't want to
369. 15:03auto compound, you could also auto
370. 15:06harvest here. It could convert your
371. 15:08reward to a specific token. For example,
372. 15:11if I'm trying to de-risk aggressively,
373. 15:14then I don't want to basically convert
374. 15:16to more Ethereum. The goal of this pool,
375. 15:18if I have a bullish range, is to slowly
376. 15:21sell my Ethereum into USDC while earning
377. 15:24some nice fees in the process. So, then
378. 15:26my goal might be to auto harvest my
379. 15:29reward into USDC in this case. And
380. 15:31there's auto exit as well. If I want to
381. 15:34protect my capital, for example, or I
382. 15:36want to set a take profit target, let's
383. 15:39say I want to exit when Ethereum's price
384. 15:41goes above $6,000,
385. 15:43I want to convert whatever's remaining
386. 15:46into the pool into stablecoin, I could
387. 15:48set this setting here. So, when this
388. 15:50price of Ethereum reaches 6,000,
389. 15:53Beefy.Finance would withdraw my
390. 15:54liquidity and sell everything into USDC.
391. 15:58And you could switch like the upper
392. 16:00trigger and the lower trigger off as
393. 16:02well. If you're using this pool to
394. 16:04dollar cost average into Ethereum, for
395. 16:06example, then I could set this exit
396. 16:09range to be at, let's say, 1,500, where
397. 16:12I'm fine with converting whatever USDC I
398. 16:15have left into Ethereum. So, this tool
399. 16:17could be great as well if you're setting
400. 16:20an automated exit. Or if you guys are
401. 16:22setting like a stop loss, you could do
402. 16:24this as well. Let's say you're yield
403. 16:26farming Ethereum, but you don't believe
404. 16:29that it's going to break 2300, right?
405. 16:32And you want to cut your losses if
406. 16:35Ethereum drops below that, so then you
407. 16:37could set like 2300 and then exit to
408. 16:40USDC. If your goal is trying to make a
409. 16:43USDC profit on the way up, similar to
410. 16:46how you would set a stop loss for a
411. 16:48trade. And you can see the transactions
412. 16:50that are happening here. For example,
413. 16:52I'm swapping my Ethereum
414. 16:54for some USDC in this case, very little
415. 16:57of it, right? I'm depositing .005
416. 17:00Ethereum and I'm swapping only .00084
417. 17:04into USDC. So, less than 20% of my
418. 17:08capital because I have a bullish range,
419. 17:10right? And then it's going to deposit
420. 17:12the liquidity for me and there's a very
421. 17:15low protocol fee of .09%
422. 17:18when there's a swap that takes place.
423. 17:21So, that's something to keep in mind.
424. 17:22There's some fees associated with it and
425. 17:25let's take a look at that right now. So,
426. 17:27in their docs, you can see here, if
427. 17:29you're depositing the NFT directly
428. 17:32manually, like for example, I have this
429. 17:34hyper liquid pool. If I were to deposit
430. 17:36manually because I make all my swaps
431. 17:39manually, right? That's what you want to
432. 17:41do if you have a lot of capital so you
433. 17:43can save on the fees. If you're
434. 17:45depositing both underlying tokens, like
435. 17:47for the example of Ethereum to USDC, if
436. 17:51I deposit those two tokens separately,
437. 17:53then it would be free, right? But if I
438. 17:56deposit only Ethereum for example, and
439. 17:59Beefy automatically swaps it for me,
440. 18:01then there's a small .09% fee. If I
441. 18:05withdraw my NFT or my liquidity, then
442. 18:08it's 0% fee. But again, if there's a
443. 18:10swap that takes place, there's a .09%
444. 18:14fee. And I believe this fee applies on
445. 18:17your total capital. So, if you have like
446. 18:19a $100,000, for example, multiply that
447. 18:22by .00009,
448. 18:24you would pay $90 for the fat to
449. 18:27basically like automate this whole
450. 18:29process for you. So, it's not too bad at
451. 18:32all when you use these other features
452. 18:34like harvesting, compounding,
453. 18:36rebalancing, these are the fees that
454. 18:38they would take. So, harvesting and
455. 18:41compounding manually, the fees is not
456. 18:43that high at all, less than 1% of your
457. 18:45reward. Auto harvest, a little bit
458. 18:48higher, 1.2%. Auto compound, 1.8%. Still
459. 18:52not bad at all. But, what would really
460. 18:54kill you is this rebalancing here,
461. 18:56especially if you're doing it very often
462. 18:59because it takes a cut of your whole
463. 19:01position, not your rewards, right? .05%
464. 19:05for the higher fee tier pools, that's
465. 19:07above like .3%, for example, the 1% fee
466. 19:10tier pools, then you would pay like .05%
467. 19:13of your position every time you
468. 19:15rebalance. But, if you guys are like me
469. 19:17where rebalance very often at all, if I
470. 19:20do rebalance at all, then this is not a
471. 19:23big deal, right? And auto rebalance,
472. 19:25again, is the same as manual. If you
473. 19:27guys are doing something like this, like
474. 19:29what Beefy is doing, then you might as
475. 19:32well just deposit into Beefy and let
476. 19:34them do it for you. But again, we were
477. 19:37looking at the price, right? It doesn't
478. 19:39make sense to invest into this pool if
479. 19:42this pool is basically declining in
480. 19:44value over time. You guys are better
481. 19:46just like holding stable coins and like
482. 19:49letting it out, right, rather than just
483. 19:51letting this bleed out over time. So, I
484. 19:53hope that makes sense. And if I want to
485. 19:55deposit right now, I could hit deposit.
486. 19:58And lastly, you could buy insurance for
487. 20:00your position as well. If my position is
488. 20:03bigger, then it might be worth it to buy
489. 20:05some insurance if I'm worried about the
490. 20:07protocol hacks. Let's say if I were to
491. 20:09deposit 10 Ethereum, then my insurance
492. 20:12is roughly 115 USDC. You can consider
493. 20:16that as an option, or you can use other
494. 20:18insurance providers as well since this
495. 20:21is quite expensive, but let's change
496. 20:23this back to the amount of deposit at
497. 20:260.005. And if I'm happy with my choice,
498. 20:29for example, I want automated reward
499. 20:32with auto harvesting, I want my max
500. 20:34price to be roughly 10,000. If I'm happy
501. 20:37with that, I would hit deposit. I have
502. 20:40Pocket Universe extension for a added
503. 20:43layer of protection. I hit continue, and
504. 20:45then I hit confirm. So, this is actually
505. 20:48deploying a fresh contract that is used
506. 20:51to basically manage your position on
507. 20:53Arbitrum. So, I haven't deposited any
508. 20:56funds yet. Once that's done, I'm going
509. 20:58to be able to swap into my position here
510. 21:01with only Ethereum.
511. 21:03Pay a little bit of fee.
512. 21:05Hit confirm, and then I could enable
513. 21:07automation here and hit confirm. And if
514. 21:10I go to this deposit tab, I see my
515. 21:13position right here. And you can see
516. 21:16your daily reward, your yearly reward,
517. 21:18your monthly reward, depending on the
518. 21:20APR. This is not that accurate, but you
519. 21:23can still take a look anyway. And here
520. 21:26you can manage your position, right? You
521. 21:28can harvest, you can compound, you can
522. 21:30exit to Ethereum, or you can withdraw
523. 21:33your position manually here, all into
524. 21:35Ethereum or the NFT itself. You can take
525. 21:38that out as well if you want to use
526. 21:41other management platforms like Revert
527. 21:43Finance, you can do that or auto swap
528. 21:46into other tokens. So, this is actually
529. 21:49really nice, and you can rebalance here
530. 21:51as well. But keep in mind again what I
531. 21:53said about rebalancing and locking in
532. 21:56your impermanent loss. And you can
533. 21:57change your compounding and harvesting
534. 22:00settings as well, right? If you don't
535. 22:02want it to auto harvest, then you can
536. 22:04turn this off as well. So, that's pretty
537. 22:06much it. I hope that makes sense. It's
538. 22:09definitely a good tool to use if you
539. 22:11guys are managing a ton of different
540. 22:13positions or running like a smaller cap
541. 22:16altcoin strategy, for example, where you
542. 22:19want to be more well diversified, then
543. 22:21you can set up Beefy to basically
544. 22:23automate your process. You can look at
545. 22:26their docs as well. Make sure you read
546. 22:28through like their audits if you're
547. 22:29worried about the contract safety
548. 22:31because we're interacting with more
549. 22:33smart contract. There is some smart
550. 22:35contract risk here. So, I wouldn't put
551. 22:38like 100% of my yield farming capital
552. 22:40here either if I want to automate my
553. 22:42process. And make sure if you guys are
554. 22:45yield farming with a lot of capital,
555. 22:47then you should use a separate hardware
556. 22:49wallet that interacts directly with
557. 22:51Beefy. That's separate from like your
558. 22:54cold storage wallet. So, then in case
559. 22:56your computer gets hacked, these
560. 22:58positions are not touched, right? If you
561. 23:00guys are using a hot wallet, then if
562. 23:02your private key gets compromised, your
563. 23:05computer got hacked, then these funds
564. 23:07would be hacked as well. So, I hope that
565. 23:09video helped. And if you guys want to
566. 23:11learn more about yield farming, be sure
567. 23:13to check these other videos out. I try
568. 23:15my best to help you guys become a more
569. 23:18consistently profitable yield farmer.
570. 23:20You could also switch on the
571. 23:22notification bell if you want to be
572. 23:24notified when I publish new videos.
573. 23:26Thank you once again for watching. I'll
574. 23:28catch you guys next time.