If The Boardroom Pays A Higher APR Than The Farm - Why Would I Just Not Put Everything in The Boardroom And Ignore The Farm?
Of course, it's totally natural to want to earn the higher APR possible.
However, staking everything in the Boardroom and ignoring the Farm is not a good strategy, and here's why.
- Firstly - the Boardroom pays in EMP.
- So if you had everything in the Boardroom - you would get paid in EMP.
- So that would mean you would have to sell the EMP to 'cash out'
- For the longevity of the protocol - we are encouraged not to sell EMP.
This is because - if everyone did this - it would be tantamount to 'everyone drawing their cash out of a bank' which would very soon result in no business for anybody.
The reason the Boardroom pays well - is because there is a healthy EMP in the Ecosystem - which keeps the APRs high.
If everyone sold their EMP - the Boardroom would fall below PEG - meaning the Boardroom would not print - reducing the value of ESHARES.
One of the reasons that EMP.Money and similar protocols can do very well - is due to the Community Aspect.
The whole protocol is designed to be Community-led - and to inspire what is known as 'good actors' - which means good customers who provide liquidity to the protocol by NOT selling EMP.
But you 100% 'safe' - to sell ESHARES (in fact that's encouraged - that's how we make regular passive income)
The ideal scenario is to take the EMP you earn in the Boardroom - and pair it with EITHER:
1: fresh ETH that you purchase.
2: ETH that you create by swapping the ESHARES that the FARM produces.
Both the above will allow you to then stake EMP-ETH into the FARM - earning you DAILY ESHARES - which ARE safe to sell (or you could as per point 2 above - swap these ESAHRES for ETH and stake back into the Farm - thereby INCREASING your LP tokens)
I know this can take a bit of getting your head around :)
But this is one of the reasons why DeFi is so new and exciting - it's turning conventional 'centralised' finance on its head.s