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Yield Farming with SmartBCH DeFi

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Avatar for Pantera
Written by   763
1 month ago

In the last two years, DeFi kicked off and turned the tables in the cryptocurrency world. Especially from the beginning of 2020, we witness a massive marketing campaign to promote DeFi. It felt odd since anonymous websites started offering high yields, with many of them claiming astronomical APRs (annual percentage rate).

A new niche in the Cryptoverse investing field appeared, the yield farmers. And within a few months, participation in Ethereum Defi projects reached high popularity. Traffic at Compound, Balancer, Uniswap, and more DeFi platforms reached extreme levels, and investors poured billions of dollars into them.

After this success, more DeFi expanded to more blockchains. DEXs like PancakeSwap reached the size of UniSwap and 1Inch.

The most modern platform that is a bridge to Ethereum and runs on top of Bitcoin Cash is SmartBCH.

SmartBCH is already up and running for a few months and we already have 3 DEXs offering staking and yield farming.

I think this is about the right time to invest in these DEXs and already did my first investment yesterday. I will explain which it is and how it proceeds, but got to admit that the results from day-1 are giving me hope.

Yield Farming on SmartBCH - Be A Chad!

Source: Twitter, (modified)

Today, we already have 3 DEXs operating within SmartBCH:

BenSwap, MistSwap, and MuesliSwap as DEXs offering DeFi opportunities.

We can put our tokens in liquidity pools and earn from trading fees. We can also trade tokens and speculate on their price appreciation by just holding.

There are stablecoins available (FlexUSD, BUSD) that we can also use when trading or for a more conservative approach when yield farming.

I traded some tokens in BenSwap but I had not tested the DeFi options so far.

DeFi Risks

I decided to use MuesliSwap, for test purposes, and understand the risk, but I also find minor differences with the other two DEXs when it comes to the risk factor. The risk mainly emanates from the native tokens (EBEN, MIST, MILK) and the probability of a rug pull, or a contract exploit.

In the previous two years of DeFi hype, we have seen quite a few occasions of rug pulls and exploits. The most famous of these was from SushiSwap, when the major developer and top liquidity provider for SUSHI on the SushiSwap platform (Chef Nomi) rug-pulled by withdrawing and selling tokens worth $13 million (source).

It is always better to diversify, so the plan is to use all three current DEXs and the options.

The DeFi financial technology is based on smart contracts and instant execution of commands, so it becomes automated finance with no third parties involved. It is pure decentralized finance and the banks are already researching it, with plans to adopt parts of DeFi in their infrastructure.

The Plan

My plan for the moment is to test, research more, and gain experience. I can lose money from this, but I also think that it is right about time for the SmartBCH DeFi to start gaining attention.

The Investment

My first step is to provided liquidity at MuesliSwap. I will also do the same investment in BenSwap and MistSwap but started with Muesli after reading the @MoreGainStrategies conversation with the devs.

I don't want @MoreGainStrategies to feel any pressure on this, of course, since I completely understand the risks and everyone should always do their research.

I just think that this interview answered many questions I had (mostly about tokenomics), which would have taken valuable time to dig out on my own.

I also think that the gains devs would have from operating a DEX will far outweigh those of a rug pull, especially when this market is still at a very early stage of operations.

Anyway, I explained that I'm not very experienced with DeFi, so the risk is already higher for me. I plan to use the rest two DEXs very soon and try to find the best gain strategy!

This is the investment. I bought 500 MILK at $0.28 (current price $0.25) and provided liquidity. This instantly rewarded me with 11 LP that I staked at the MuesliSwap Farms.

It is 16 hours later, and this investment has already made me $2.26. The APR is changing though, and probably will be lower later.

At the current rates, within a month, this investment will pay a 36.07% yield, and give back about $100. The yield is fluctuating, though. It was about the same when I invested, but I witnessed it doubling at some point. Then moving down again to about the same APR.

Since this is still a test for me, I will come back with better results after a week or better after a month. I will see how it goes and perhaps increase my investment if I find it to be worthwhile.

In Conclusion

Source

SmartBCH is just at the first stage of what will be a long and challenging process. By testing the field, we are exposing part of our portfolio to risk, but we can also discover the opportunities of DeFi.

The success of SmartBCH will be essential for the price appreciation of Bitcoin Cash. The increase of demand, together with the burning process SmartBCH applies for BCH fees, will bring substantial growth for the Bitcoin Cash network.

It is not the only card Bitcoin Cash has to play, though. More developments are coming with tokenization and prediction markets.

SmartBCH is probably the ace in the sleeve for Bitcoin Cash, a development that creates a competitive advantage in DeFi, NFTs, Dapps, and allows developers to create without the issues of high fees and congestion of the Ethereum chain.

Images:

Lead Image from: Pixabay (modified)


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Written by   763
1 month ago
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Comments

I am just trainee and new here I am just learner. I am learning about cryptocurrency. You article about all that stuff help a lot. Thanks. I really appreciate your thinking abilities managing word and sentences. And searching abilities are mind blowing. Keep it up as it benefits very much to me and to others also.

$ 0.00
1 month ago

I'm loving the 3 DEXes, I think there are an amazing tool for BCH. Thanks for this article. It's very informative. Question: How do you access the ROI calculator?

$ 0.00
1 month ago

There is a button next to the apr percentage that opens the ROI calculator. It is looking like a calculator.

$ 0.00
1 month ago

Thanks :)

$ 0.00
1 month ago

Very nice article. And as of right now, it looks like you made a wise investment decision. 👏

Thank you for mentioning my interview with the developers. I am very, very happy that it seems like my intuition was right and the MuesliSwap developers are in it for the long term. I believe they will use SmartBCH to gain experience in running a DEX that they plan to deploy additionally on Cardano later.

$ 0.05
1 month ago

Hey! Don't forget to check your sponsors, I applied with the new logo, and it is pending for a week!

$ 0.00
1 month ago

Oh, I'm sorry about that. I didn't see the notification. Now I approved and thank you very much. 😊

$ 0.00
1 month ago

Going very well indeed! I will update in a week but probably earlier in noise.cash.

$ 0.00
1 month ago

Pantera thank you for providing few information, there is a lot to study and learn and we need this from experts like you and the others. I saw DefiCake with 20$ sign up or registration ongoing in the internet, I dont know if we need what else is needed to sign up on it. Other tokens are for games, some is for the others. I have to gain knowledge little by little, but I know that investing has changing values and rates. Standby- SuperJulalaine.

$ 0.00
1 month ago

Thank you, how great, I got acquainted with your article with DEFI, I will definitely follow this currency from now on, thank you for sharing your information and analysis with us, I sincerely hope the smart bch project succeeds.

$ 0.00
1 month ago

There so much about tokens I don't understand.

$ 0.00
1 month ago

I think you should begin here :

https://read.cash/@Pantera/how-to-set-up-metamask-and-add-networks-binance-bsc-polygon-matic-okex-smartbch-tutorial-7265e1c4

This is something you will need since you got involved with crypto. You will learn how to use Metamask, a wallet for your crypto tokens that is used for many networks, including Ethereum and SmartBCH.

$ 0.00
1 month ago

Thanks I will check it out now.

$ 0.00
1 month ago

At the current rates, within a month, this investment will pay a 36.07% yield, and give back about $100.

The keywords are "at the current rates." In a month you may be able to get as little as $50 for 381k MILK. Your capital locked in LP is then also only worth half.

$ 0.00
1 month ago

In a month I will make another article and give the results. The yield is not fixed, I specifically explained.

$ 0.00
1 month ago

The yield is not fixed, I specifically explained.

I know. However, the value of MILK in a month is crucial. If it is only worth half, it is still half as bad. But if it's only worth a tenth, it's dramatic. On the other hand, if it's worth ten times that, it's excellent for the investment. Everything depends on the value of the MILK token in a month.

$ 0.10
1 month ago

I may not be experienced enough to sbch dexes but it could have been better for me that I waited for the presale to end. The price drops. Hoping for its future pump!

$ 0.05
1 month ago

I'm sure it will recover. I wanted to buy at presales but wasn't ready yet. I was glad to see price being lower than presales so I bought immediately. Usually the prices of these native tokens appreciate together with more investors joining.

$ 0.00
1 month ago

Good for you. That's certain so I'm eager to see the muesli community grow ❤️

$ 0.00
1 month ago

Soy de las que para invertir lo pienso una y mil veses ya que no cuento con mucho capital. Más bien paso entre las pobres. Además de mis malas experiencias en este tipo de asuntos. Pero te deseo suerte y mucho éxito a ti que si te arriesgas y eres tan emprendedor. Cómo siempre mi saludo y gran afecto para ti.

$ 0.00
1 month ago

Thanks! Of course, we need to allocate time in research before we invest. Invest wisely and the best will come.

$ 0.00
1 month ago

Haven't tried any of the three yet since I still could not set an amount "I am willing to lose". LOL, But maybe within this week, I'll try BenSwap first.

$ 0.00
1 month ago

I'm going to invest in Benswap farms next. And after that MistSwap. It is money we make from our online activities anyway so I don't mind risking it.

$ 0.01
1 month ago