April 26, 2021

Why Harvest Finance is Better even though Binance Smart Chain Low Fees

Harvest Finance BSC Summary

With the release of other smart chains, yield farming becomes more affordable for average users. Although Binance Smart Chain was not the first to follow Ethereum's path, it was the spark for the new farming craziness because of cheap fees in average ¢10 per transaction. Still, do you know that using Harvest Finance is better than farming directly?

Compounding

While in my first article about Harvest Finance, I wrote the difference between annual per rate (APR) and annual per yield (APY). To review it simply, APR is the interest generated annually while APY includes all the interest generated by investing previously generated interest. In traditional certificate of deposit, we may choose to claim interest montly and in APY we deposit those interest as well to earn more interests. While in my first post about Harvest Finance I covered the concept of APY but did not relate it to decentralized finance (DeFi) technicality yet.

Executing smart contract costs gas fees and the two gas fees that we definitely cannot avoid are approving contract and depositing assets to farms. Other gas fees can actually be avoided by automating the process, in other words include the process in a single smart contract and not separate. Let's take a look a three scenarios of an example that we want to reinvest our earned interest everyday:

The Legacy Process

Legacy Cake Pool
  1. Harvesting the interest cost $0.1 gas fee.
  2. Reinvesting the interest cost $0.1 gas fee.

Everyday costs $0.1 * 2 = $0.2 gas fee to reinvest. In a year, will cost $0.2 * 365 = $73 gas fees.

The Current Process

Current Cake Pool
  1. Reinvesting the interest cost $0.1 gas fee.

Today, almost every farming platform have the "compound" button where we no longer need to spend fee to harvest before reinvesting. Everyday costs $0.1 gas fee to reinvest. In a year, will cost $0.1 * 365 = $36.5 gas fees which reduces the costs by half.

Auto Compounding

Let us say the the smart contract auto harvest and reinvest our interest daily. Therefore, no need to spend gas fees which reduces the costs to zero. This auto compounding the basic feature that is available in Harvest Finance though I have not read yet every when the smart contract harvest and reinvest.

More Strategies

If I am not wrong or assuming this is the case in this article as it does change the logic of the explanation, let us say that highest amount CAKE token are given to those who provided liquidity between BNB and CAKE with APR at the time of this writing is 82% * 40 in Pancake Swap. After this exists 3 approaches:

Compound To CAKE Pool

  1. Harvesting CAKE cost $0.1 gas fee.
  2. Reinvesting CAKE cost $0.1 gas fee.

Doing this cost $0.2 gas fee for reinvesting the CAKE into CAKE pool of 92% APR.

Compound To BNB-CAKE Pool

BNB-CAKE Pool
  1. Harvesting CAKE cost $0.1 gas fee.
  2. Selling half of the CAKE to BNB cost $0.1 gas fee.
  3. Providing another BNB-CAKE liquidity cost $0.1 gas fee.
  4. Reinvesting BNB-CAKE LP token to farm cost $0.1 gas fee.

Doing this cost two times the gas fee $0.4 than the more simple staking the harvested CAKE into CAKE pool but note that this strategy can be more profitable because BNB-CAKE pool has an APR of 82% * 40 while CAKE POOL only has 92% APR.

Trading Strategy

  1. Farm another asset that will go up in value cost $0.1 gas fee
  2. Harvest asset cost $0.1 gas fee
  3. Sell asset cost $0.1 gas fee
  4. repeat

In my second article about Harvest Finance, I emphasized the value of assets. Generally we want to farm an asset that is stable or better goes up in value. What I did not write is that the APR or APY dynamically changes when the asset value changes if the token emission rate does not change. A token that spikes up in value will also cause a spike in the APR and APY indicator.

Why Harvest Finance is Better

Harvest Finance BSC

Harvest Finance provides auto compounding and high yield strategies. Not only that, we are also rewarded with FARM tokens for using Harvest Finance. Look forward as Harvest Finance is always researching better strategies.

Finally Understand The Significance On Ethereum Farms

I never farmed on Ethereum because it is expensive and only knew the process theoretically. With many cheaper smart chains today, I finally started farming myself and learned the details that I missed when I was only reading articles. In Binance Smart Chain, Harvest Finance saves us around a hundred dollar assuming auto compounding everyday. Now let us go back to the old days why Harvest Finance was very valuable. In Binance Smart Chain, the average gas fee is $0.1 while in Ethereum the average gas fee is $50. How about if we change the narrative of this article to Ethereum?

  • Daily liquidity process (BNB-CAKE equivalent strategy) a year costs $50 * 4 * 365 = $73000
  • Daily legacy process a year costs $50 * 2 * 365 = $36500
  • Daily current process a year costs $50 * 365 = $18250

Would you look at that, in Ethereum Harvest Finance potentially saves tens of thousands of dollars or the above strategy was never possible manually where farmers compound not daily but monthly or even longer and with Harvest Finance, higher APY was possible because of fee eliminations.

This article was first published on Publish0x and mirrored below:

April 21, 2021

Binance Smart Chain and Yield Farming Portfolio Tools Early 2021

BSC Portfolio Tools Early 2021
If you have spent a long time in Ethereum (ETH), you may have bought a lot of tokens, and you may need to keep track of them using portfolio trackers. For example, there are Dextools and Astrotools, though my favourite is Zerion where I can not only see statistics of my holdings in charts just like a portfolio but I can also disclose or open them to everyone else. Many people frequently wants to see one my portfolios and with Zerion, all I have to do is share this link https://app.zerion.io/0x9cbd20f35e039499fbe203c69c834d35b538c5c0. As you can see to share your Ethereum tokens portfolio, you write Zerion's hyperlink https://app.zerion.io/ followed with your Ethereum address where the formula is like this https://app.zerion.io/[your ETH address]. Recently, Binance Smart Chain (BSC) is where the next DeFi craziness happens and again automatic portfolio tools are demanded on this Smart Chain:

Ape Board Finance

Ape Board Finance
Ape Board Finance is the Zerion of BSC and to be multichain. Why did I call the Zerion of BSC? Because this tool is the only one on BSC that generates a hyperlink that we can share with other people and their Feature Request Board is almost the same as Zerion's. If you read my list about low risk yield farming using stable coins, you may know that there are many people who wants me to invest their money and the safe plan with high interest is available on BSC but back then I did not know how to transparently show their investment status to my clients other than using BSC Scan which is not suited for non-technical people. However finally, I found Ape Board Finance where all I needed to do was just like Zerion by putting my clients BSC address next to Ape Board Finance Dashboard's hyperlink for example one of my client's https://apeboard.finance/dashboard/0x1822307f5bce3d38a46696fa1AF91ed12c29fb94. After clicking, wait for a few second delay to show the farmings if there are. All other portfolio tools on BSC currently does not have this feature which is very critical since sharing portfolio links is one of the most demanded feature. Wait, would not that be a problem for users who wants privacy? Unfortunately, it is useless as the blockchain itself is already open and transparent. What these tools does is only organizing and beautifying them. By the way, Zerion is also working on BSC and in the future multichain as well but if I am not wrong, I saw Zerion primarily focused on ETH and Ape Board Finance focused on BSC.

Yield Watch

Yield Watch
Yield Watch is the first portfolio tool that I knew on BSC probably because it was initially offered on Pancake Swap Initial Farm Offering (IFO). Out of all the user interface (UI), I liked Yield Watch best. However, I see it to support mostly popular coins and farms like Pancake Swap. If you do not explore much and only holding or farming top coins on BSC, then Yield Watch probably suits you. Although you need to hold $1 of WATCH to track every $200 in your wallet. It means that you should put 0.5% (1/200) of your portfolio in WATCH to use its service. It is not necessary to have to only hold the WATCH but you can use it to provide liquidity and farm and you can still enjoy the service.

Poo Coin

Poo Coin
Currently, as a portfolio tool it is the least of my favourite but it has two unique features that other tools does not have or maybe more that I do not know. The first feature is the promote feature where either you stake BNB/POO liquidity token or pay BNB to advertise coins on the front page. That is right! If you are a whale, this is the place to shill some coins! On the serious side, project founders can promote their projects here. The second feature is the chart feature while Dextools is still mainly on ETH and Dex Guru rarely works on tokens outside of Pancake Swap, Poo Coin chart works on many coin for example here is the chart for JDI Yield https://poocoin.app/tokens/0x0491648C910ad2c1aFaab733faF71D30313Df7FC mainly traded on Ape Swap. The full power of this feature can be enjoyed through the premium feature by buying Poo Coin first. The first tier is to provide $100 of BNB/POO LP which disable advertisements and allows us to track other wallets and the second tier is to provide $300 of BNB/POO LP where the trades that we perfomed can be plotted on the price chart (just carefully take a look on my image above that I bought Moonrat just before April 17th).

JDI Yield

JDI Yield
If you are an explorer like me who farms on dozens BSC platforms, then you better check JDI Yield. Although the current UI does not match other tools (though they will redesign within this 3 weeks), they are the fastest in integrating yield farming platforms which is probably their signature. If you read my last post, you should know that there are over 30 BSC Yield Farming DEXs and you know what? Most of them I knew from JDI Yield. If you farm on dozens of BSC platforms, I recommend you to get 2000 JDI for the future pro version while the price is still $0.1. $200 is affordable for average people like us and if the price rises like POLS, Dextools, Astrotools, BSC Starter, etc, you probably need thousands of tens of thousands of dollars to enjoy. I'm in the pro feature because I need the "harvest all" button rather than going to dozens of websites and click each of their harvest button, and the "withdraw all" button if anything fishy is going on like source code problems. One thing missing though, is "sell all" button either to BUSD or BNB so we may have a chance to dodge price drops or even worse rug pulls. Another two features to increase the safety of the farmers are certification by JDI Yield showing which farms that they think is safe and code change alert like where who knows farm developers becomes sneaky and does not inform their farmers. Another convenient feature is email and other social media notifications such as on Line, Messenger, Whatsapp, and Telegram for farmers who wants to receive their farming progress report there instead of opening the site everytime. Finally this is not financial advice but utility advice. Buy 2000 JDI if you need but if I said to buy more than 2000 would be a financial advice since there is not use case for the excess 2000 for now except for speculating and selling at a higher price. Adding another to that, you can use them to farm in Ape Swap to earn more JDI.

If you know anymore, please leave them in the comment section.

Mirrors

April 20, 2021

List of Yield Farming Craziness DEX on BSC Early 2021

bsc dex list early 2021
Thanks to Binance Smart Chain, decentralized finance (DeFi) became affordable for the average people. During expensive times in Ethereum, fees are $50 average per transaction while Binance Smart Chain fees are ¢10 average. With that, many new players are entering the game including myself resulting into many automated market maker (AMM) decentralized exchanges (DEX) with yield farming emerges. In my previous article, I have wrote that other chains are also following the trend of building their own smart chain but popularity are not as much as Binance Smart Chain. Most of them today only have one AMM DEX. At most I found Avalanche to have 3 DEXs which are Pangolin, Yetiswap, and Snowball. While Binance Smart Chain have a crazy amount of DEXs eventhough it is just a few month after its launch:
Pancake Swap
Pancake Swap
Ape Swap
Ape Swap
Bakery Swap
Bakery Swap
Slime Finance
Slime Finance V1, Slime Finance V2
Many Swap
Many Swap
Thunder Swap
Thunder Swap
BSCEX
BSCEX
Ice Berg Finance
Ice Berg Finance
BSC Swap
BSC Swap
Burger Swap
Burger Swap
Cafe Swap
Cafe Swap
Ramen Swap
Ramen Swap
Cheese and its associates.
Cheese and its associates.
Pho Swap
Pho Swap
Uranium Finance
Uranium Finance
Koala DeFi
Koala DeFi
Ellipsis Finance
Ellipsis Finance
Blizzard Money
Blizzard Money
Warden Swap
Warden Swap
Blue Swap
Blue Swap
Hyperjump Swap
Hyperjump Swap
Jul Swap
Jul Swap
Kebab Finance
Kebab Finance
Goose Finance
Goose Finance
Salt Swap
Salt Swap
Dodo
Dodo
Sishi Finance
Sishi Finance
Panda Yield
Panda Yield
Macaron Swap
Macaron Swap
Mochi Swap
Mochi Swap
Cheese Cake Swap
Cheese Cake Swap
Bogged Finance
Bogged Finance
Stablex Swap
Stablex Swap
Conquer Swap
Conquer Swap
Wow Swap
Wow Swap

Disclaimer: this is only a list and not financial advice to jump in any of them. Many can be opportunities but do your own research (DYOR) because price can dump, rug pull, or there can be vulnerabilities in their codes. Although most of them are audited by Certik but do read the audit results. Leave a comment if you know more or if you have a comment about any of these decentralized exchanges.

Mirrors

April 14, 2021

Low Risk Yield Farming Using Fiat Stable Coins Early 2021

What Many People Ignore in Staking and Yield Farming

Back in the old days whenever someone said HODL my reply was why not just stake instead and earn some interest? That is true if the coin we stake will go up in value. However, many people did not think of what happen if the coin value go down? For example, you have 100 coins worth $1 each ($100 worth) with interest annual percentage rate (APR) 30% a year:

  • With APR 30% you will have 100 + 30 = 130 coins at the end of the year.
  • If the price drops more than APR 30%, you lose for example 130 coins costs $0.6 (price drops by 40%) is worth 130 * 0.6 = $78. Profit/loss $78 - $100 = -$22
  • If the price drops slightly below APR you still win for example 130 coins costs $0.8 (price drops by 20%) is worth 130 * 0.8 = $104. Profit/loss $104 - $100 = $4
  • If the price stays you win ofcourse. 30% APR is $130 where profit/loss $130 - $100 = $30.
  • If the price goes up is the best situation. Not only your investment when up but you also earned interest. Still the best investment is ofcourse the one with the highest profit. For example, which do you prefer? Buy Fairmoon on 30th March 2021 or buy and stake Ape Swap Banana?
    • I bought 200 Ape Swap Banana at $0.5 ($100 worth of investment) and the APR on its pool is 266%, and then the price goes up to $1. 200 Banana 266% is 532 Banana so the total is 200 + 532 = 732 then * $1 which all worth $732 and the profit/loss is $732 - $100 = $632.
    • Buy $100 Fairmoon at $0.00015 on March 30, 2021 where we will get 666666 Fairmoon. 3 days later, the price goes up to $0.02 which is $0.02 - $0.00015 = $0.01985, divided by $0.00015 = 132 then time 100% = 13200%. Anyway the 666666 Fairmoon * $0.02 is now worth $13333 where the profit/loss = $13333 - $100 = $13233.
    • Comparing both profit, buying Fairmoon early $13233 - $632 = $12601 more profitable than buying and staking Apeswap Banana. (Disclaimer: this is just historical example and not financial advice for example if Apeswap Banana will go up to $20, 732 * $20 = 14640, ofcourse it is better to buy and stake Apeswap Banana)

Issue With Many New Players

Now, the problem is the new players in crypto. For old timer like us, we are used to do our own research (DYOR) such as check the fundamentals, check the sentiments, and finally check the technical analysis of a coin. If there is potential, then buy the coin. Majority of new players probably does not bother doing there own research and even if they did, we still wonder if they are able to handle the volatility of the market. 10% - 20% up and down a day is normal in crypto but those new players most likely will have a heart attack after seeing their investment (or gamble) down by 10% the next day and panic sell. The day later, they cry because their gamble that they sold went up by 50%. When I became known to be in crypto, most of the people who came to me want to give me money and use them to invest in crypto on their behalf.

  1. Learning to invest in cryptocurrency takes time for those who are not computer literate.
  2. Some are just to lazy to learn and just want to leave their money to me hoping to profit together.

The Safe Plan I Found

Therefore, for these people, I search some plans of low risk investments in crypto and one of the answer I found is yield farming using stable fiat coin. Yield farming in crypto is providing liquidity and get rewarded in fees plus some tokens. It is called farming because the coins we plant generates crops. For those of you who still do not understand, just think of it as a certificate of deposit (COD) that generates interest in another currency for example we deposit Dollar and we get interest in Yuan. Like staking, yield farming is not profitable if the interest does not cover the loss of the asset's value (the coin goes down in price). However, there are farms now where we do not need to risk our investment in volatile coins but use fiat stable coins as the seeds to grow some yields.

Yield farming started during the decentralized finance (DeFi) craze in 2020. For example, we can just supply some dollar stable coins such USDC and DAI and earn interest plus farming their COMP token. Why did I not start back then but only now? The fees on Ethereum became crazily expensive for for average people. Imagine paying $50 to deposit then another $50 to withdraw. This is because of Ethereum scalability issue with only a dozens of transaction per second because they are focusing more on decentralization and security. The more users came, the more users wait and they do not like waiting so what do they do? Rich people who farms hundred thousands of dollars, millions of dollars, are willing to pay thousands of dollars of fee. A thousand dollar is like a snack to them. What about average people like us? We are only willing the pay a few dollars and how long must me wait until a miner serve us? Maybe forever because there are always people willing to pay more?

Good news for average people like us this year there are Layer 2 Ethereums and other alternatives such as Binance Smart Chain, Avalanche, and Wan Chain that ranges the fee from almost 0 to most expensive as 20 cents. We can profit in farming with only just a hundred dollar. Other than that, what are these stable coin farming are useful for?

  1. Generate yields on our stable coins while we are doing our own research (DOOR) waiting for our next investment.
  2. Lower risk plan for high net worth individuals with better returns than the traditional financial system. If you are living in developed countries, you will be lucky finding a deposit interest rate of 1% and if you are not lucky, the interest rate is negative meaning that you are losing money instead. In developing countries, you may find 5% of interest rate. In mutual funds and government bonds, you are lucky if you can find 10% APR. Today's yield farming using fiat stable coin cryptocurrency guarantees a rate above 10% where for now I saw 20% - 100% APY.
  3. A safe plan for other people who wants to put their money in you because they are too lazy to do crypto themselves. Before I found this safe plan, I always reject them because crypto trading is more risky than stock trading. Although I won thousands of dollars but there are bear markets where I lose thousands of dollars as well. Now with these low risk plans that I found, I am starting my investment firms for those who kept bugging me to take their money and help them invest it.
  4. Face it, the world we are living now almost everything is valued in fiat such as USD. Not only we buy goods and services using USD but most of us earn our wages in USD which is why eventhough I like the term 1 BTC = 1 BTC but it is too selfish to use. Not all people can earn in BTC and even if they can, not all of us can use BTC to buy foods and drinks. Lets be realistic that most of us do not measure the value of a coin in BTC nor XAU but measure them in USD. If the value in USD goes down is a loss and if the value in USD goes up is a profit. Then what about yield farming using fiat stable coins? Theoretically, we can never lose because the coin value remains stable to the USD and we earn interest plus yield unless the fees are high.

Before I continue, while the calculator shows no risk because it is USD generating interest and yield but becareful with the platform because malicious platform can steal our money. For now top well known platforms such as Venus Protocol, Pancake Swap, and Ape Swap are reliable and maybe some other audited platforms as well such as Conveyor Belt. Other than that, becareful of other platform for example Turtle DEX was said to be rug pulled where people putting their money there lost them.

Polygon/Matic

Quick Swap when $150/QUICK

Stable Coin Quick Swap
  • maUSDC-USDC: 31.58% in QUICK

Cometh Swap when $199/MUST

Stable Coin Cometh Swap
  • maUSDC-USDC: 51% in MUST

Wan Chain

Wan Swap when $0.379/WASP

Stable Coin Wan Swap
  • wanUSDT-wanUSDC: 47% in WASP

Binance Smart Chain

Venus Protocol when $79.63/XVS

Stable Coin Venus Protocol
  • USDC: 9.56%
  • USDT: 4.1%
  • DAI: 5.73%
  • BUSD: 9.71%

Pancake Swap when $17.5/CAKE

Stable Coin Pancake Swap
  • USDC-BUSD: 19.2% * 0.5 in CAKE
  • USDT-BUSD: 12.89% * 0.5 in CAKE
  • DAI-BUSD: 20.56% * 0.5 in CAKE
  • VAI-BUSD: 27.46% * 0.5 in CAKE
  • UST-BUSD: 24.19% * 0.5 in CAKE

Ape Swap when $1/BANANA

Stable Coin Ape Swap
  • USDC-BUSD: 58.79% * 1.5 in BANANA

Bakery Swap when $1/BAKE

Stable Coin Bakery Swap
  • BUSD-USDC: 29.03% in BAKE

Conveyor Belt when $100/BELT

Stable Coin Conveyor Belt
  • BUSD, USDC, USDT, DAI: 65.95% in BELT

Pancake Bunny when $264/BUNNY

Stable Coin Pancake Bunny
  • VAI-BUSD: 73.44% in BUNNY
  • VAI-BUSD Cake Maximizer: 102.78% in CAKE and BUNNY
  • USDT-BUSD: 43.46% in BUNNY
  • USDT-BUSD: 29.66% in KEBAB

JulSwap when $0.15/JULD

Stable Coin Jul Swap
  • USDT-BUSD: 30.93% in JULD

Hyperjump when $1.2/ALLOY

Stable Coin Hyper Jump
  • USDT-BUSD: 62.01% in ALLOY

Kebab Finance when $2.25/KEBAB

Stable Coin Kebab Finance
  • USDC-BUSD: 35.61% in KEBAB
  • USDT-BUSD: 29.66% in KEBAB
  • DAI-BUSD: 36.47% in KEBAB

Spartan Protocol when $1.22/SPARTAN

Stable Coin Spartan Protocol
  • BUSD: 170.13% in SPARTAN
  • USDT: 170.56% in SPARTAN

DODO when $3.7/DODO

Stable Coin DODO
  • BUSD-USDT: 40% in DODO

Swamp when $124/SWAMP

Stable Coin Swamp
  • USDT-BUSD: 67.49% * 0.5 in SWAMP

UBU Finance when $0.38/UBU

Stable Coin UBU
  • USDT: 152.92% * in UBU

Goose Finance when $26.159/EGG

Stable Coin Goose Finance
  • USDT-BUSD: 75.25% * 4 in EGG (Deposit Fee 1.5%)
  • USDC-BUSD: 60.37% * 4 in EGG (Deposit Fee 1.5%)
  • DAI-BUSD: 95.26% * 4 in EGG (Deposit Fee 1.5%)
  • BUSD: 77.61% * 2 in EGG (Deposit Fee 1.5%)
  • USDT: 79.64% in EGG (Deposit Fee 1.5%)
  • USDC: 80.50% in EGG (Deposit Fee 1.5%)
  • DAI: 86.22% in EGG (Deposit Fee 1.5%)

Salt Swap when $0.369/SALT

Stable Coin Salt Swap
  • DAI-BUSD: 52.6% * 4 in SALT (Deposit Fee 1.5%)

Slime Finance when $3.304/SLIME

Stable Coin Slime Finance
  • USDT-BUSD: 109.54% * 2 in SLIME (Deposit Fee 4%)
  • USDT-BUSD Slime LP: 61.42% * 2 in SLIME (Deposit Fee 4%)
  • DAI-BUSD: 57.58% * 2 in SLIME (Deposit Fee 4%)
  • BUSD: 65.07% * 1.5 in SLIME (Deposit Fee 4%)
  • USDT: 62.91% in SLIME (Deposit Fee 4%)

Blue Finance when $4/BLUE

Stable Coin Blue Finance
  • USDT-BUSD: 54.43% * 16 in BLUE (Deposit Fee 2%)
  • BUSD: 83.92% * 16 in BLUE (Deposit Fee 4%)
  • BUSD Purple Layer: 275.35% * 12 in PURPLE (Deposit Fee 4%)

Many Swap when $0.28/MANY

Stable Coin Many Swap
  • BUSD: 508.52% in MANY (Deposit Fee 4%)

Thunder Swap when $4.77/THUNDER

Stable Coin Thunder Swap
  • DAI-BUSD: 394% in THUNDER (Deposit Fee 4%)
  • USDT-BUSD: 356% in THUNDER (Deposit Fee 4%)
  • USDC-BUSD: 399% in THUNDER (Deposit Fee 4%)

More Platforms Will Definitely Come

Leave a comment if you know more platforms and I will include them in the next post.

Mirrors