Newbie questions

Hello everyone, I’m a newbie trying this yield farming thing and would like to ask some basic stuff. I just started putting a small amount of bpt tokens in the KNC Pool, so my questions are:

1- Once I click the claim rewards, what exactly are these rewards? Do I receive some sort of tax rewards from the liquidity pools ?
2- I’ll receive back the exact amount of BPT tokens I sent, plus the YFV tokens ?
3- I noticed some people talking about staking the YFV token itself. If I want to do that, I need to claim rewards and than submit the YFV tokens to the “Staking Pool V2” ?

Thanks in advance.

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When you just “claim”, you’ll receive your YFV tokens and a small amount of vUSD and vETH. The YFV token is the most actionable asset at the moment. You can take it to the YFV v2 stake pool and put it there to receive rewards of vETH and vUSD. vUSD and vETH are newly created tokens issued by the YFV devs. There really isn’t a market for them at the moment and everyone is pretty clueless at this point as to what the larger plan is for them. They’re “elastic” supply assets (see AMPL). I’m currently straining my brain trying to think of what the use-case would be for an elastic supply ETH… maybe it’s pointless, maybe it’s genius.

If you decide to quit farming, you’ll get your remaining YFV and vETH & vUSD AND your BPT tokens back. You can then take your BTP tokens back to balancer and redeem them for the tokens you originally staked. The number of tokens will probably be a little out of whack compared to what you originally put in due to “impermanent loss”. Best to read up on this topic before participating in liquidity pools – it’s important and can really screw you over if you’re not careful and mindful of what you’re getting into. That being said, the YFV pools are structured in such a way that mitigate this loss quite a bit since they’re mostly a 98% to 2% ratio. Pools that require, for instance, 50% ETH and 50% “SOME-OTHER-TOKEN” can really wreck you – even when the market is busting through the roof. Those are the times when it’s particularly painful: you get to see how well you would’ve done by just holding ETH vs. being a nice guy and providing liquidity.

Do lots of reading ask lots of questions. Farm a lilttle before you farm a lot. Find people in the space that you respect and have have good reputations and take cues from them. The more you can learn the better and it will set you up in the future to really be able to leverage this stuff to your extreme advantage.

Good luck!

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Thanks for touching in the point of impermanent loss.

Ive been checking around the whole day and found that you should star getting concerned when the (YFV in the case of 98/2% format pools) reaches drops 85% of its value that you start losing big part of your other coin like WETH… but when is -85% what is the price since it fluctuate all the time?

If you know any thing else about it please share with me… I will help a lot and give better understand to plan my investments.

Thanks

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another newbie question
When I claim my rewards YFV goes to my Metamask wallet. vUSD and vETH don’t.
Is there a wallet which is supporting those? And if, where to swap them?

you need to add those in your metaMask
use the contract Id and put them - press add token in MetaMask

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thanks found it on ether scan

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