If you had $4m in traditional investments, how much would you sell to put into yield farming/liquidity mining, keeping in mind capital gains tax, etc? Of course the answer is different for everyone depending on their risk tolerance, their investment horizon, etc, but I am curious what each person would do.
it would depend on the risk/return profile of the investments in questions. Also if the investments are liquid. I generally think defi is one of the best options for risk capital, as long as you are technically savvy and understand the risks of the space. Contributing to build such a young space so early on should have good future upside if some of the promises are realized, especially considering the current macro-economic conditions.
I don’t think anyone should answer you that question, is should be you, yourself. If one has no skin in the game, it’s easy to say words without feeling the stress of it.
My portfolio and game-plan is rigid and I make corrections based of informations I get. But it doesn’t happened too often. Answer yourself this question: how much risk are you able to tolerant? How much money are you ready to lose, if something goes wrong? This is the amount of money you can put on more risky decisions, the rest should be in more safe place.
I do believe in yearn.finance and Cronje skills of coding. So based on that I’m not afraid that much of putting my money on the protocol. But not all-in. Never.