The Club1BCH Treasury - Auto-financing with LAW Punks and Tango
Every organization, in every field, thrives to be financially independent and aims to auto-finance their activity. Back in January 2021, when Club1BCH was "created", we had no idea how our small social experiment will turn up. Things suddenly took off and we started a movement based on positivity and quality. Club1BCH Q1 2021 - Genesis and events presents the journey between January and March 2021, and how a comment made this happen.
At the end of November we received a kind donation from Jessica Martinez, a person who's been part of the Cryptoverse since 2011. She kindly shared 1 BCH for the Club's December events and this motivated us to "pay it forward!" because sharing is caring!
One Bitcoin Cash was available and there were about 3 weeks to go before sharing prizes and tips with the BCH community. I don't like lazy money so the only option was to make that $BCH work!
What will be the next new thing? I would say punks ... and the most affordable punks were the LAW Punks by BlockNG. The floor price was 0.12 BCH at that time and I wasn't ready to spend 0.6 out of one Bitcoin Cash on NFTs. I looked for an alternative option and after a tough negotiation with Mr.Trenzs... I got a sweet deal. Got 5 LAW Punks for a full staking team, 4 of them 1.2 BCH and an extra one offered for free. It was such a good deal that was paid in to instalments, 0.35 BCH on the day and 0.13 BCH weeks later.
Next step was to stake the Punks and earn $LAW, and I was surprised to see that I was sent above average humans. Filled the 5 spots for Proof of Punk and joined the fun! The female with sun glasses and Mohawk had 13 hash rate, the highest from the team.
The hash rate obtained was 48.178, and will generate some profit even at 0.462 $LAW block reward. At the time of writing, the LAW token reached a new ATH at $0.69. The December farming reward was 102 $LAW, approximately $70 at the average price over the last days.
BlockNG and the LAW Punks keep evolving as a project and the NFT floor price grows at the same pace as the token value. The latest floor price for common humans is at 0.499 BCH which raised the value of initial investments 5 times. With the floor price for LAW Punks got crazy, the Club1BCH assets are not valued at 2.45 Bitcoin Cash.
The second idea was to take advantage of the TangoSwap high APR for LPs and powerfarm some $TANGO. The BCH-Tango and xTango- Tango had the highest ARP from the list, making this two the perfect options. Paired 0.2 wBCH with 557 TANGO to create the first LP, and used the remaining BCH to create the Tango-xTango pairing
SmartBCH has low fees and fast transactions, making it easy to play with DeFi products. On the day of staking, the APR for the two LPs was 2071% and 2192%. The wBCH-Tango pool shared 50 times more $Tango than the other pool.
The strategy was to constantly add the farmed Tango into the Tango-xTango pool, and keep boosting the earnings. The deposit in this pool was 300 Tango, summing up at $60 due to the $0.20 price per token. The price I bought Tango was higher than today, and this investment lost 50% of the value. But you know what they say... you don't gain or lose until you sell.
Using the BCHCC bridge to sent BCH to the smartBCH chain had a little advantage ... the $CATS airdrop. Two CashCats checks were waiting to be claimed, summing up 71.71 tokens. When I said "a little advantage" ... I meant a little advantage, as their value is 0,25 USD.
The Tango farming went well, even with the big dip in value. As the APR dip in power, the earnings were lower and lower. Three weeks later and no price surge, so I had to accept the semi-failure and pull out the wBCH-Tango LP to sponsor the winter events.
Semi-Failure? Surely not! I just want this sugarcoated! With 0.2 BCH + 557 TANGO going in and 0.076 BCH + 452 Tango coming out, this investment dropped from $150 to only $72 in just 3 weeks.
I was just being over-dramatic with the failure of the LP, because in fact it generated enough $TANGO to cover most of the losses on the balance sheet. The initial investment was $210 and the value of those tokens after the market crash and the impermanent losses was only $97. However, I am not afraid of the dip... I am a dip veteran!
To summarize the birth of the Club1BCH Treasury, the one Bitcoin Cash was used to buy 5 LAW Punks and to farm $TANGO. Part of the farmed $LAW was sold and with part of the farmed $TANGO was used to pay the remaining 0.13 BCH from the purchase of the NFTs.
The remaining $Tango and $LAW were used to sponsor the #Club1BCH December events. The total BCH used from the Treasury and shared throughout December was 0.55 BCH for all the events. The initial gift was spent wisely and now assets are slowly pilling up for future events! Have a look at the great things we achieved and how we spread festive vibes throughout the Bitcoin Cash community: Unwrapping BCH gifts for a better world!
Meet the winners of the Christmas cards competition by @bmjc98
BCH Logo Competition by @nheng1118
The Club1BCH SmartBCH Secret Santa and Winter Raffle
Club1BCH Christmas Celebration - The BCHampions!
Club1BCH & Bityard Events - Three Crypto Opportunities
Club1BCH Christmas event - fill your stockings with NFTs
Club1BCH social media links:
Club1BCH Q1 2021 - Genesis and events
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You guys are impressive to manage the funds, what a great way to make it grow. I'm really afraid with Impermanent loss😂