I have been following the price fluctuations of xBGT on Berachain for a while, enjoying the honey but also taking hits.
The risk ranking of various mining pools is as follows (personal perspective)
1. USDC|HONEY, BYUSD|HONEY and other dual stablecoin pools, stable and steady, of course, with the lowest annualized return of 3-5%. Used as a hedge before a market crash occurs.
2. Single-coin stake pools, such as Bera, sdWBera, sWBera, the first choice for coin-based farming pools under normal market fluctuations, will never lose Bera.
3. Various xBera|Honey's xBera composed of stablecoins. Similar risk to type 2, slightly higher risk, but also slightly higher returns; there will be no loss of Bera under non-extreme market decline.
4. Various xBGT|xBera's xBera (including BREAD) and xBGT, equivalent to Bera and its strongly correlated derivative coin pools, somewhat like leveraged contracts for going long; when Bera rises, the returns double, and when it falls, the losses are also doubled. The decline will incur losses in Bera. Currently, the most unstable ones are LBGT and YBGT, although these two are the most expensive after minting, they have the greatest volatility.
5. Various altcoin|xBera/xBGT pools, with the highest risk, and also the easiest pools to rush for the highest APR. If the interest rate rises to 1000% as before, you can make a small profit, but normally do not enter, and need to always pay attention to APR, TVL, and relative coin prices, preparing to withdraw.
My current strategy is also very simple, mainly investing in types 1 and 2, ensuring no loss in coin-based assets. Before May 6th, all Bera will be converted to stablecoins; after May 6th, I will re-enter the pools based on risk. For the pools in 4 and 5, a small portion of funds will be allocated after May 6th to seek excess returns, but I need to constantly be alert that the closer xBGT gets to its historical high, the more I should withdraw and exit.
