Three months later, we’re ending the first season of our groundbreaking reality show “Making Money from Crypto. Test-drive”. On New Year’s Eve, December 30, 2021, we will tell you how much we earned, what conclusions we made, and share our plans for the next year.
Unforced Losses or Is Champagne Always Worth the Risk?
The investment in NFT farming on the new centralized platform HeroCat.io has completely failed.
Not only are we unlikely to get our investment back in the current conditions, but the ability to sell our NFT cat is also in serious doubt. Especially considering the events described in the previous article.
At the end of 2021, we managed to withdraw $458 from the platform. One more transfer worth $161 was lost.
Currently, the NFT cat with 1,500 hashrate brings about 23 HCT per day, which at the current exchange rate of $0.16 is about $3.7.
So at the end of the season, we managed to get back 38% of the invested funds to date. Under the terms of the show, we will consider that our original $200 is lost.
S — Stability
To recap, the Free TON blockchain was renamed EVERSCALE in November, and the native TON Crystal blockchain token is now called EVER. Many blockchain services are in the process of rebranding and are still using the old names.
We were lucky with the terms and the farming of the WTON-WITH pair on the TON Swap platform did not disappoint us. Taking into account the recent EVER increase by almost 30% and the Ether dropping to $3,700 limit, three months of farming brought us about $70 (190 WTON). On top of that, our invested assets were $220, which is $20 higher than what we originally invested.
According to the 120-day vesting period, only 71 WTON are currently available for withdrawal. The remaining 118 WTONs will be gradually unlocked for withdrawal until April 30, 2022.
After withdrawing the invested funds from farming we split the pair and got 308 WTON and about 0.0301579 WETH. The impermanent loss was 0.3%, i.e. had no impact.
After the exchange of funds, we received $253.7.
Total income from farming on the TON Swap platform at the end of the year was about $53.
Lots Of Sweets Are Bad For You!
We are at loss from investing in auto CAKE on the Pancake Swap.
For 3 months the profit from farming was 1.487 CAKE (∼$18). However, considering the drop in the CAKE exchange rate to $12, we were able to withdraw $144. The loss from the investment was $56.
Winter Is Not the Season For Tulips
Investing in the high-yield SYP-SOL pair on the Solana Tulip.Garden blockchain platform also didn’t pay off. Even the high-interest rate of the SYP token did not save the threefold decrease in its value. In total, the income from farming is $25, and the total asset value is $147.
After withdrawing the LP pair from farming and splitting it up on the Raydium.io platform, we got 1423 SYP and 0.38 SOL. The impermanent loss was 11%.
After the exchange, we got $133, which is even less than expected.
In total, minus $67 of our initial investment.
Three months ago we started our show – investing $200 in farming various pairs on various platforms. What about now, when the new year is on the doorstep and it’s time to draw up the balance?
Platforms and income:
+ $70 brought us the farming of the NEAR-USDT pair on Ref Finance
+ $225 earned by farming ZOO-BUSD on ZOO Game
+ $53 from farming WTON-WETH on TON Swap, keeping in mind the 118 EVER tokens positive bonus that will be back within 4 months.
– $56 from staking CAKE on Pancake Swap.
– $67 from farming SYP-SOL Tulip.Garden platform.
– $200 from the very risky investment in HeroCat.io NFT farming.
Not much, you say? However, let’s not forget that in addition to the $25 we earned, we gained invaluable experience. Some of the conclusions can be formulated right now:
- Often the risk of investing in farming a high-yield but volatile pair is not justified. Because the rewards will not cover the drop of the asset value due to the drop of one or two tokens of the pair
- It is not worth investing in underdeveloped and centralized platforms, especially if you are promised a fabulous income at the start.
- With a significant and rapid increase in the value of the invested asset, a good strategy would be to secure it in stablecoins or other stable assets.
- The risk of impermanent losses in practice does not have such a strong impact as the value of the assets themselves.