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Compounding DeFi Fees and Watching ETH On‑Chain Signals

I start my day by reinvesting accrued DeFi fees into my core LPs — primarily ETH‑USD, SOL‑USD and HYPE‑USD — and allocating harvested fees into wide‑range pools to compound yield with controlled risk. This keeps my farming running on autopilot while capturing more fee income.

I monitor key on‑chain fundamentals for ETH (SOPR, MVRV and volume dynamics) to detect profit realization, buildup of unrealized gains, and market maker activity; anomalous volume‑price divergences trigger hedges or position adjustments. I then review overnight news last, after filtering out noise, so I have energy to draw clean conclusions.

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Analysis

The routine is disciplined: automated compounding plus focused on‑chain monitoring provides systematic yield and risk signals. Concentration in ETH gives clear signal relevance but raises exposure to ...

Recommendation

Keep the reinvestment cadence and on‑chain checks, but define explicit SOPR/MVRV thresholds and volume rules for hedging or trimming. Size wide‑range pool allocations conservatively, diversify a bit b...

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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