# Basic Strategy guide

**The following guides are for educational purposes only, and should not be construed as financial advice. The following strategies simply represent a good approach to balancing exposure to assets across the Magik ecosystem.**

**1). If $MAGIK price is higher than $FTM:**

A). Buy $MAGIK on SpiritSwap and pair it with $FTM to provide liquidity 

B). Deposit your LP in its vault on Magik Farm 

C). Compound and take profits slowly while $MAGIK is over peg

**2). If $MAGIK price is lower than $FTM:**

A). Buy MAGIK and exchange it for MBOND 

B). Exchange $MBOND for a redemption bonus once $MAGIK is back over peg 

C). Sell half of your rewarded $MAGIK to $FTM and provide liquidity 

D). Deposit your LP in its vault on Magik Farm 

E). Compound and take profits slowly while $MAGIK is over peg

1. **The 50/50 Method: 50/50 is the method best suited to provide stability for both the platform and for your underlying investment. By boosting liquidity, the 50/50 strategy reduces price volatility, and helps $MAGIK stay above the peg for longer to keep the Dungeon printing. This, in turn, attracts new investors and keeps the ecosystem growing.**

A). When you claim $MAGIK rewards in the Dungeon, sell 50% for $FTM 

B). Use 50% $MAGIK and 50% $FTM and deposit in the cauldron 

C). Deposit your LP yielded $MSHARE in the Dungeon.

The Cauldron APR is linear and prints 24/7, regardless of Magik's relation to the peg. The Dungeon prints only when Magik's TWAP is above 1.01. The dungeon’s APR is entirely dependent on how well $MAGIK maintains its peg.

Because $MAGIK follows the price of $FTM, the MAGIK-FTM LP is akin to holding $FTM with a high daily yield. In other words, if you're bullish on $FTM's price action, the MAGIK-FTM LP is a way to maximize your yield.