Velo (VELO)

These backtests for yield-bearing assets are insane.

@valueverse_ai has a module that runs DCA backtests ($1,000/week) across four strategies for yield-bearing positions.

The numbers for @VelodromeFi vs @AerodromeFi are super interesting.

VELO, $1,000/week from 2023, $139,000 invested:

> Hold: $68,000
> Withdraw yield: $100,000
> Reinvest yield: $82,000

The token kept declining, so compounding only made things worse. However, and this is super important, lockers received an Aerodrome airdrop early on, and those gains would have more than offset the losses.

AERO, same DCA from Jan 2024, $130,000 invested:

> Hold: $177,000
> Withdraw yield: $320,000
> Reinvest yield: $326,000

Here the gap between reinvesting and withdrawing yield is small ($6,000), but both massively outperform simply holding.

The yield did the heavy lifting.

$VELO spotted ✌️ https://t.co/trYU5hhzUO

Cash flow assets hedge themselves.

I've been running a @VelodromeFi position through @40acres_Finance since August 26 last year. Bitcoin was at $115k and VELO at $0.041. Since then, both have fallen around 50%.

I took a $3,200 loan against my VELO NFT and routed 100% of the yield to repay it automatically. Ten months later, $900 has already been paid back (without counting rebases).

Most people separate yield from price performance when evaluating an investment. They shouldn't.

Every dollar of cash flow reduces your effective cost basis, even while the asset declines.

Btw, 40acres recently shipped a new version, and my weekly earnings increased from $10-15 to $24.

Too early to know if that was related to the new version or the last pump on VELO and its metrics.