Yield Farming vs. Liquidity Pool Investment Comparison

DeFi Yield Strategy Analyzer: LP vs. Farm

Common Investment Inputs

Initial Total Investment Value (USD):

Investment Horizon (Months):

Primary Asset Context (e.g., ETH-USDC LP, CAKE Staking):

Liquidity Pool (LP) Scenario Details

LP Platform Name (Optional):

LP Pair Name (e.g., ETH/USDC):

Estimated APY from Trading Fees (%):

Estimated Annual Impermanent Loss (IL) Impact (%):

Enter as a negative percentage for loss (e.g., -5), or positive if you expect IL mitigation to generate gains (rare). This is a simplified annual impact on your LP capital's growth from fees.

One-time Network/Platform Fees for LP Setup & Exit ($) (Total for entry & exit):

Perceived Liquidity of this LP Position:

Yield Farming Scenario Details

Yield Farm Platform Name (Optional):

Asset(s) Being Farmed:

Estimated Yield Farming APY (% from reward tokens):

Yield Farming Platform Fee (% of rewards earned) (Optional):

One-time Network/Platform Fees ($) (Total for setup, claims, compounding, exit):

Perceived Volatility/Sustainability of Reward Token(s):

Compounding Strategy for Farm Rewards:

The APY entered should ideally reflect chosen compounding. Manual periodic reinvesting can incur additional gas costs not factored into the fixed fee above.

Comparison Summary: LP vs. Yield Farming

Asset Context:

Disclaimer & Important Considerations:

This tool provides estimates based on your inputs. Actual returns in DeFi are highly volatile and NOT guaranteed.
APYs are Estimates: Quoted APYs can change rapidly due to market conditions, pool utilization, and reward token price fluctuations.
Impermanent Loss (IL): For LPs, IL is a complex risk where the value of your deposited assets can underperform simply holding them, especially if the prices of the paired assets diverge significantly. The "IL Impact %" you entered is a simplified estimate.
Reward Token Value: Yield farming rewards are often paid in platform-native tokens. The value of these tokens can be extremely volatile and may decrease significantly, impacting your actual USD returns.
Transaction (Gas) Fees: Network fees for depositing, withdrawing, staking, claiming rewards, and compounding can be substantial, especially on networks like Ethereum mainnet. The "One-time Transaction Fees" you entered are an attempt to capture this but can vary.
Smart Contract & Platform Risks: All DeFi activities involve risks of smart contract bugs, exploits, hacks, and platform insolvency/rug pulls.

This analysis is for informational and educational purposes only and does NOT constitute financial advice. Always conduct thorough personal research (DYOR) and understand the specific risks of any protocol or strategy before investing. Invest only what you can afford to lose.