Yield Farming is Broken — What to Do About It?

5 min readApr 9, 2021

Well, the answer is dead simple. Just invest in projects that are fixing what is broken. The end. LOL.

But seriously, let’s take a look at how these huge problems:

If you didn’t know, yield farming is

A) a whale game where you need to figure when to dump before the others
B) causing small projects to be dumped close to zero

The classic ‘they come, they eat, they leave’. Naturally, it is a good thing when a project is not anything special — bad projects don’t deserve long-term price appreciation.

Yet, we’ve seen projects with extremely high-quality development and technology being dumped in the beginning and then rise from the ashes. They are now solving these problems even if the token price during early days dumped to close to $100K market cap.

Was that enough warm-up for you? Here we go, let’s fix the problems:

PART 1: DESTROY THE WHALES (or tame them)

Tokens represent governance. One governance token governs one ecosystem, right? For example, SushiSwap governance happens through SUSHI tokens. If you want to be part of several communities and make your vote matter, you need many different tokens…

OR DO YOU?

WHAT IF…

…you could own a governance token that was governing 10 or 100 projects at the time?

As farming gives you governance token rewards, you will dump that token on the market for ETH. Stay with me, it’s about to get interesting:

What if there was a platform that would:

A) reward you in ETH

B) execute governance token to be bought from the market and distributed to you, IF you chose to take your rewards in the governance token instead of ETH?

C) Incentivized no dumping of the governance token, and was built only on solid ‘pumpamentals’.

Dracula Protocol does this. When you have different LP-tokens from several other farming projects Dracula gives you the option to stake them on its native platform. It then farms your tokens and automatically sells the “victim” governance tokens to the market for ETH, keeping just a tiny portion of the “victims” governance token in Dracula’s vault — we will come back to the vault part in a moment.

Now, the ETH rewards then get automatically compounded with ETH staking on a trusted platform such as AAVE, so the rewards get another boost.

In plain English: Growth for everybody instead of just the whales.

When you decide to harvest your rewards, you either choose to receive all that ETH, or if you choose to receive it in Dracula governance token DRC, the code automatically buys DRC from the market and distributes DRC to you.

But why would you want to receive the governance token?

The vault man, the vault!

The vault now holds governance tokens from other protocols. Let’s say Dracula would have 2% of all circulating tokens of SUSHI in its vault. If you then hold DRC, you are holding tokens with 2% voting power in SUSHI governance.

Yes, you read that right.

Dracula will delegate the voting power from its partners to DRC holders. While you stake your DRC on Dracula, you will also be receiving a small portion of all ETH rewards piled on the platform.

To add a cherry to the top, all actions on Dracula Protocol are crowdfunded from the total rewards. This will help all the users as all the fees get cut big time.

No more f*cking whale games.

It’s DeFi for the people.

The Robin Hood turned vampirical.

These elements solve the problem of only whales being able to act freely in an ecosystem, and the whales dumping. They also solve a problem with governance as today so many votes do not get used as you often need to pay a fee to vote, too.

One problem remains though: How to bring liquidity to create an incentive for someone to buy into a project with big money. Also, how to have liquidity to buffer the price when going downwards too?

PART 2: DECENTRALIZE THE LIQUIDITY FOR A MILLION YEARS TO COME

Enter Toad.Network

In TOAD you farm using your LP-tokens and you get rewarded with LP-tokens.

The trick is that when you enter LP-token farm, you pay a 10% fee.

And when you exit you pay another 10%.

Wait a minute — isn’t that how Ponzi works?

You’ll see soon enough.

These LP-token fees will become rewards. You can withdraw your gained rewards without an additional fee. Then you can use those rewards by adding them to TOAD-BNB staking pool to gain rewards in TOAD. And again, you can stake TOAD to receive staking rewards for more TOAD.

The minute the whales come in for their treat of eating and sh*tting on the project, they’ll give 10% to the existing community of LP farmers.

When they are done with their lunch and withdrawing LPs to dump on the market, f*ck yeah, they give ANOTHER 10% to the whole community.

Don’t you love where this is going?

Instead of a Ponzi, we have a long-term hodler & farmer community with decentralized & perpetual liquidity. For a million years to come…

Now, as said, TOAD is building an ecosystem of perpetual liquidity. Bored of pancakeswap forks and their lack of vision, Toad will launch their own swap soon. As they will use their code on tokens listed on the exchange, there will be enough liquidity for good amount of trading with no possibilities for teams to do rug-pulls. Toad is building something that no other project is offering — at least I haven’t dyorred any that do.

And I dyor more than 0.1% people in crypto…

The huge liquidity will also serve as a reserve for plenty of financial tools such as lending and savings.

DeFi for the people’s republic of crypto space. Or resistance. Or whatever you want to call it.

These two projects work on different blockchains, Dracula on Ethereum and Toad Network on Binance Smartchain, but both see their near future as cross-chain. Meaning the elements of both ecosystems will serve all of the crypto space.

Let’s cut it here. Now I ask you to talk to the devs and see if they’re BASED on not.

Be sure to follow the development of the future giants on their socials:

Dracula protocol:

Website — https://dracula.sucks/

Twitter — https://twitter.com/DraculaProtocol

Medium — https://medium.com/@DraculaProtocol

Reddit — https://www.reddit.com/r/Draculaprotocol/

LinkedIn — https://www.linkedin.com/company/dracula-protocol

ClubHouse — https://www.joinclubhouse.com/club/dracula-protocol-clu

Hive — https://hive.blog/@draculaprotocol/

Steemit — https://steemit.com/@draculaprotocol

Discord — https://discord.gg/7JgByFU