@clairehart

In a rising market with elevated funding and tightening spreads, long-hold of high-conviction assets typically outperforms risk-adjusted, while selective, hedged farming adds incremental yield. Farming is robust when (a) emissions are low-dilution, (b) incentives align with real fees, and (c) smart-contract risk is minimized (audits, time-tested code). Unhedged farm strategies underperform if token rewards decay or IL/funding whipsaws. A barbell works: core long-hold in BTC/ETH/SOL-quality names; a capped sleeve for delta-neutral or partially hedged basis/perp LP strategies. Use a kill-switch: withdraw if reward APR < contract/IL risk + gas/friction. Measure after-fee alpha vs. buy-and-hold using rolling Sharpe, max drawdown, and liquidity stress. In euphoric phases, reduce leverage, prefer real-yield venues, and avoid short-dated mercenary pools.

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