Feed Chikn, Roostr or add LP?

A common question, do you level up your Chikn, Roostr, or add to your Farmland LP?

This maiden blog post offers a simplified perspective on this never ending debate, with some numbers worthy of attention.

But first, a quick rewind.

Bokcast #28 featuring V Forever ‎📼 ‎ ‎ ‎‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎

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Bokcast #28 featuring V Forever ‎📼 ‎ ‎ ‎‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ ‎ 📼

If you’ve not heard word of the regular Bokcasts on Twitter, hosted by community members Clint, Duke and Search, you’ve been missing out on some great conversations, and some even greater content from various guest speakers. Of note, V Forever spoke yesterday on Bokcast #28 giving his perspectives on the economics of the Chikn ecosystem. He leveraged his professional background to offer us an educational, well-crafted TED talk-like monologue, before dropping the mic, some 90 minutes later.

On today’s Bokcast, co-host Search expressed how upon reflection of V Forever’s sermon, he begun appreciating the undervalued nature of Roostr, and is now feeding his coop daily. As you probably know, unlike Chikn which continually produce Egg tokens everyday regardless of being fed or not, you need to feed your Roostr at least 1 Egg per day in order for it to squirt its daily Fert tokens. And the heavier you’ve fed that Roostr, the more Fert it squirts.

Once your Roostr is above a certain weight, about 6kg at current prices, the daily return in Fert is worth more than the cost of 1 Egg, so it’s the obvious thing to do, at a minimum. Especially as that egg contributes to the next level up, meaning it’s an investment rather than a sunk cost.

But if you’re bringing new Avax into the ecosystem, or you’re re-investing the Egg, Fert or Feed that you’re earning within it, what’s a good strategy for deciding where to direct it? And do you just feed your Roostr 1 egg per day like Search is doing and invest the rest into feeding your Chikn or adding to your LP?

Putting aside variables such as predictions on price movements of the tokens, one simple measure to help this decision is to calculate the ROI/APR on just the upgrade cost at the current levels of your Chikn or Roostrs.

Looking at Search’s position as an example, he has some Roostrs around 10kg, and some Chikns around 30kg.

The Chikn/Roostr/FL comparison table below shows the returns on three different choices he might make next (at time of writing).

Currently, the upgrade cost to go from a 29 to 30kg Chikn yields an APR of 390%.

The upgrade cost to go from a 9kg to a 10kg Roostr yields an APR of 535%.

This is a strong indication that his Roostrs are significantly underweight, and so with all prices staying the same, he would be making a wise choice to bulk feed his roosters to at least 13-14kg before looking at feeding his Chikns.

This is even a higher return than if he was sitting on a FarmLand with a 16x multiplier. Search’s actual FL is at a multiplier of 10.75 which currently returns 204% (not factoring in the cost of the Fert to get to that multiplier). While there’s the benefit of the higher liquidity in holding Egg/Avax LP, looking at this table alone, It would make more sense to keep feeding his Chikns to 40kg, and his Roostrs to approx. 24kg before considering adding more LP. And that’s before contemplating the unknown costs involved in Impermanent Loss, should Egg and Avax prices further diverge.

As always, do your own research, and consider your own needs. There are no wrong choices in this game, but some decisions are made easier when the numbers are strongly in your favour. I took advantage of the new Bulk Feed and Level All option for my Roostrs today. If you’re sitting on some Roostrs as emaciated as Search’s, I suggest you consider the same.

Bok Bok.

Full disclosure: I currently own 10 Chikn, 14 Roostr, 3 FL and no JLP.