All reward earned will be automatically sold and reinvested back into the strategy to maximise the compounding effect.
Strategy
The Metaverse Farmer strategy holds predominantly ETH, with the rest diversified among Metverse leaders such as AXS, SLP, ILV, GHST, REVV, and MVI. In addition to providing diversified exposure to the metaverse industry, the fund takes advantage of yield farming, by using funds to provide liquidity and receive fees in return on Uniswap and Sushi
This allows the overall strategy to not only benefit from the appreciation of the token price itself, but also enjoy the additional rewards offered by liquidity pools. All rewards generated by liquidity pools are then automatically sold in regular intervals and reinvested back into the LP for compounding.
Risks
As the assets are allocated in liquidity-providing pairs, an impermanent loss is a risk for this strategy when the price of one asset significantly outpaces the other in the pair.