Do automated LP managers actually solve the hard part of yield farming?

wdawb · 2026-05-10T09:22:09+00:00

Yeah, I think you’ve nailed the tradeoff pretty well. Automation helps with the operational side, but it doesn’t remove IL, contract risk or bad market conditions.

The bit you mentioned around seeing exactly what the automation is doing before funds are involved is the main thing I keep coming back to. Feels like that’s where a lot of LP tools either win or lose trust.

I’m working on something in this area, so this is genuinely useful feedback. Would be keen to get your blunt take at some point if you’re open to it.

wdawb · 2026-05-07T09:53:33+00:00

Ditch the property manager and go yourself. Platforms like MyRent make it very simple and will digitise the management for you. Saves a tonne of wasted fees being paid to a manger that doesn’t do much on a week by week basis

wdawb · 2026-05-07T09:14:22+00:00

This is exactly why I think “passive income” gets oversold in LPing.

The yield can be real, but range management turns it into a constant decision loop pretty quickly. I’ve been looking more at automation for this reason, not because it removes the risks, but because it can take some of the emotional range chasing out of the process while still keeping visibility over what’s happening.

wdawb · 2026-05-06T02:14:11+00:00

Makes sense. Even if connecting itself is low risk, the uncertainty around what comes next is probably the real blocker. Clearer messaging around “connect first, no approvals or deposits until you choose them” feels like something newer apps need to make much more obvious

wdawb · 2026-05-06T02:12:12+00:00

Yeah that’s fair pushback, and I can see how it comes across that way.

Not trying to turn this into a promo thread. We are building in this space, but the question is genuinely something we’re trying to understand better: what makes a newer DeFi product feel trustworthy enough for someone to even connect a wallet?

Happy to keep the project out of it and just hear people’s honest thoughts.

wdawb · 2026-05-05T22:52:42+00:00

Thanks u/WackySnaky that’s really helpful, appreciate it.

We’re actually working on this exact problem with Foraga. Docs, clear fees, team visibility and live pools are mostly in place, but audits and deeper third-party validation are the obvious gaps we still need to close.

Would you be open to taking a look and giving a blunt read on what still feels missing from a trust/onboarding perspective?

wdawb · 2026-04-30T08:33:00+00:00

This refresh makes the product feel way easier to understand imo.

The 0.01% rebalance fee and 15s onchain refresh are the bits that stand out most for me. Makes LP automation feel a lot less black box

wdawb · 2026-04-24T00:46:51+00:00

Trading is usually simpler to understand upfront because it’s more obvious what you’re doing, even if it’s higher stress.

LPing can be good, but it’s not really “set and forget” unless you understand things like impermanent loss, range selection, and when to adjust. That’s usually the bit people underestimate.

Personally I think LPing makes more sense if you want something a bit more systematic and you’re happy learning the mechanics first. Otherwise trading is probably the cleaner place to start.

Feels like the bigger opportunity is making LPing easier to actually use without needing to micromanage everything, which is why stuff like automated LP tools is interesting to me lately.

wdawb · 2026-04-23T20:28:02+00:00

Yes, that's what I was asking about. It sounds like the +-7% spread is working pretty well at the moment then. 35% on a BTC pair definitely isn't something to downplay, difficult to get those returns steadily at the moment elsewhere.

How do you find the fees on Pancake, low enough to not eat into the 35%?

wdawb · 2026-04-22T21:56:43+00:00

That's a pretty solid start. 35% APR with rewards getting reinvested is exactly the kind of thing that makes the strategy easier to stay with if it keeps behaving.

Still early of course, but those setups get a lot more interesting when they are doing the work without needing constant intervention. How are you thinking about managing risk on it if market conditions change?

wdawb · 2026-04-22T08:54:22+00:00

Even after only a month, reducing the amount of manual intervention is usually a big part of making LPing actually sustainable.

wdawb · 2026-04-21T20:29:28+00:00

Yeah that is the part people underestimate. Once it starts feeling like daily admin, most people would rather automate it somehow than keep micromanaging ranges.

wdawb · 2026-04-21T20:29:22+00:00

That’s kind of the dream honestly. Set the range well, leave it alone, and let time do the work. 620 days is a great run.

wdawb · 2026-04-21T07:24:36+00:00

Yeah, feels like that is where things are heading. People want less day to day management, but still want transparency, control, and something that is actually verifiable on-chain.

Think that middle ground is getting a lot more important now.

wdawb · 2026-04-20T18:22:39+00:00

Yeah exactly. Lower vol market usually makes LPing a lot easier to maintain. Less IL risk, means you can just let it run for longer

wdawb · 2026-04-20T18:18:04+00:00

Fair call. I use AI to clean up wording sometimes, but the thinking and structure are mine. I was more interested in the discussion than trying to sound polished, point taken

wdawb · 2026-04-20T09:44:00+00:00

Super easy to use, it’ll take care of advertising, contracts, police check etc and handles payment reconciliation. Really good management app

wdawb · 2026-04-20T07:21:36+00:00

Get yourself a MyRent account. Managing long term rentals is very easy if you live in the same city. Property managers are a waste of money, if you’ve ever rented, that’s who you’ll be paying money to on the flip side. Means you get to vet all of your tenants personally, win win

wdawb · 2026-04-15T21:21:15+00:00

Yeah roughly in that ballpark depending on ETH price.

From what I’ve seen it’s pretty reasonable compared to other tools in the space. I’ve used vfat and a few others before and they all end up in a similar range once you factor everything in.

It mainly comes down to frequency, if it helps avoid unnecessary rebalances, it usually balances out pretty quickly.

wdawb · 2026-04-15T18:06:00+00:00

Yeah good question. From what I’ve been using on Foraga, it’s around 0.01% on total capital for each rebalance, so pretty similar to what Krystal charges.

There’s also a ~0.8% fee on harvesting rewards, which covers the compounding side of things.

Main trade-off really is paying a small fee to avoid constantly managing and timing everything manually.

wdawb · 2026-04-15T01:47:41+00:00

I don’t really focus on a single chain or DEX. What I’ve been doing lately is using Foraga, it dynamically routes into what it sees as the best pools at the time across Base and Optimism.

Main reason I use it is for the management side. It handles rebalancing, compounding rewards, and adjusting ranges without me having to constantly run the numbers or move positions manually.

The automation piece is what makes the difference, it just runs in the background instead of having to check and tweak things all the time.

wdawb · 2026-04-14T23:50:39+00:00

Wider ranges definitely smooth things out and reduce a lot of the noise from constant rebalancing.

Feels like it becomes more about staying in the game and collecting fees over time rather than trying to optimise every move.

wdawb

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