Howdy fellow farmers! I'm hoping that today's discussion will bring some value to your farming business so let's not chit-chat too much and cut straight to the point.
# Esential Farming Tools
Finding fertile ground isn't as easy as one may think. There are thousands of farms out there but most of them are complete garbage so you will need to know the difference. My number one discovery tool is definitely Vfat.
**[Vfat.tools](Vfat.tools)** lets you explore a ton of farms on many different chains. For now, you can check which farms are active on the following chains:
- BSC
- HECO
- POLYGON
- xDAI
- AVAX
- FANTOM
- HARMONY
- FUSE
- ThunderCore
- OKEX
- KUCOIN
Once you realize how many farms are active right now it may seem overwhelming but it is not as bad as it looks.
Pick your chain, scroll down to the bottom of the list and start by opening a handful of farms in new tabs. It is inspection time.
**Key Metrics**
- TVL
- Market Cap
- Native Token Circulating Supply
- Native Token Max Supply
- Total Liquidity For Native Token
The farming business is not very clean so you will need to get your hands dirty. Start by selecting a few farms that actually have some liquidity (preferably close to or over $1M). Look at the APY numbers in the farming and pool section, figure out if that APY is sustainable, and make your move.
Look the token up on [DexGuru](https://dex.guru/) or [PooCoin](https://poocoin.app/). On both websites, you will find the total liquidity on the top left side of your screen. This is the maximum cashout (theoretically) that you could make with this project at any given moment. This means that even if you make millions in gains, you won't be able to cash it out because there isn't enough liquidity.
DYOR by looking into the docs. See if the developers are doxxed, if they had any previous experience on similar projects, and collect any other relevant info. If all of it looks very bleak proceed with caution.
Occasionally check the stats on [DeFi Pulse](https://defipulse.com/). It will help you determine the current sentiment in the defi space. Number go up = good.
Connect your metamask wallet to [DeBank](https://debank.com/) and track your farming portfolio performance easily. They still don't support all chains so don't expect too much from it.
[Zapper](https://zapper.fi/) is great for one-click deposits on Polygon, BSC, Fantom and Optimism. [Zerion](https://app.zerion.io/) is similar but it also lets you check the current value of Uniswap LP tokens.
[Dune Analytics](https://dune.xyz/home) is your one-stop-shop for blockchain data.
For those serious about doing research, it doesn't get better than [Messari](https://messari.io/).
To know how much revenue a project is generating use [Token Terminal](https://www.tokenterminal.com/)
[RugDoc](https://rugdoc.io/) is another discovery tool that you might find useful.
# Stategy
Once you have picked your poison you will need to form a strategy. These are the most common ones:
- **You got in early - harvest and sell constantly**
- **You got in after a few weeks - harvest and sell 50%, compound the rest**
- **You got in late - invest small and stack**
Most of the farms out there are unsustainable. They generate no profit and have nothing to justify the token price so these should be treated with immediate dumping. If you don't see long-term value in a farm but still want to participate it is always best to secure profits before taking a gamble.
Another mistake I see people make is get in early and stack constantly. While you are doing that others are selling all the time making your stacked tokens worth less with every passing second. Supply and demand are key in this game.
Utility comes first. Be sure that the token you are getting into has some mid-term value as well. Can it be used for anything else except LPing and farming? If yes then you will probably have a very profitable exit point in the near future. Be prepared.
Do not expect too much from farms and always be ready to see them drop to zero. This is a very risky business with scammers deploying new farms every minute. Navigate the minefield, stick to the ones you know, and try to stay in profit. Promises of Moon landings usually don't end well.
# Important Things To Remember
99% of the farms you will find on vfat generate zero profit. Their business model is issuing new tokens and hoping they won't crash due to hyperinflation.
Your long-term investments should be in organizations that are for-profit. See Badger DAO, Yearn, Curve, Bancor, AAVE and other similar projects for reference.
No one takes farming roadmaps seriously so don't expect major pumps, especially if you got in early. Whales will farm with their long-term holdings and dump farmed tokens constantly for profits. They are in it for the money, not the project.
Don't be afraid to pull the plug even if you are at a loss. If things start getting fishy and you identify red flags it is better to save what is left of your capital than to let it all go to zero. Farms are not girlfriends so no emotional attachment is allowed, ok?
Vfat does not display all available farms. To get in early you will need to get the alpha on Twitter, Discord or Telegram. Most projects get listed on Vfat after the farming already started.
# Final Words
Hopefully, this will help you identify better opportunities and stay away from scams. And whatever you do, have risk management on your mind at all times.
Also, if you find this information useful consider following for more. Jerry has some fun plans for the LeoFinance community in the very near future and let's just say that free money is involved.
Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@jerrythefarmer/defi-farming-done-right-essential-tools-and-strategies-to-maximize-yield-and-minimize-risk)
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