My experience using Compound to earn interest on BAT.

My experience using Compound to earn interest on BAT.

By MadMaxx | Crypto Fondue | 12 Jul 2020


For about a year now, I've been using Compound.finance to earn interest on my BAT.

From the days when Publish0x paid out as much as 100BAT to today when it's mostly focused on DAI, I still save my BAT on Compound.

This is my experience using Compound for over a year now to save just BAT.

THE REASON I MADE THIS DECISION

It's not a very wise thing to do to focus on warning interest for just one cryptocurrency. Yet, I still did it for reasons I'll tell you. 

I did it because BAT was very undervalued at the time. I started saving my BAT from 0.15USD, and when it dropped to 0.09USD, I bought a lot more, rather than panic sell. This is because I knew that BAT would spring back up eventually.

That massive drop lowered my average cost by a stupid amount, and so even though I still save BAT at its current price, my overall average is something like 0.16USD.

I'm what you would call a "BAT maximalist". I don't believe that it's the Bitcoin the world needs, or that it's the only cryptocurrency that matters. But what I do believe is that it would be worth so much more than it currently is worth.

As of now, I have about 6000BAT stored away at an average price of 0.16USD. That number would increase on Monday as well, if you know what I mean.🌛

HOW ON EARTH DID I GET 6000BAT FROM PUBLISH0X?

The answer is: I didn't. Which is why I'm writing this post in the first place. Back in the early days of Publish0x, I used to write about 2 posts everyday, because I always wanted to be paid for my writing. That allowed me to withdraw as much as 50BAT a week consecutively. There were weeks I actually withdrew 100BAT as well.

However, it's Compound that helped me reach 6000BAT. I remember vividly sending my BAT to be lent out on Compound once it reached my hands. That prudence gave me mad profits, especially since Compound was giving out as much as 7% APR back then. 

Compound is the best way to increase your crypto without losing anything. I never lost a single BAT during the whole year period.

Equally, Compound allows you to earn interest on top of your already earned interest. Combine that with your Publish0x earnings, and you're basically earning free money WITH free money. It's a situation in which you can't lose.

HOW TO USE COMPOUND

This is the last section of this "discussion". 

The easiest way to use Compound is to download the Trust wallet and use it from the dApp browser. That way, you won't pay any obscene fees.

You'd have to connect your wallet to the Compound App. Once you've done that, you can then move your funds from the wallet to the app and start earning interest in it immediately.

Essentially, you can keep your money flowing within the compound app and keep earning interest indefinitely.

Equally, there's the new COMP token which you can earn by saving on Compound. The tokens are distributed to users based on the amount they save. At the time, one COMP token is worth about 200USD, so getting a few of those for free would be amazing.

This concludes our discussion on my experience.

 

Thanks for reading this "discussion". If you like this format of posting, please leave your comment down below. I will continue it occasionally if many people like it.

 


MadMaxx
MadMaxx

In the eternal quest for crypto fulfilment. I'm an obese frog on the internet, what I say most definitely isn't financial advice.


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