I've put $7000 into 7 DeFi Platforms [Week #40]

I've put $7000 into 7 DeFi Platforms [Week #40]

By Brawnd0 | CryptoLetter | 7 May 2021


40 weeks ago, on July 14th, 2020, I had put ~$7000 across various DeFi platforms. Here's the first post if you've missed it. 

Today, on Week #40 of this experiment, I decided to produce another update for you as it has been a good few weeks since my last update in February. 

The market has completely changed since February as the bull run continues to flourish, and, as a result, I am sure you know that this Farming portfolio has also flourished alongside it.

Here is a quick reminder of what I have been tracking;

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Here are the results on a token basis with the number of crypto-tokens returned (NOT $ Values).

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Key Takeaways:

  • The total number of $DAI tokens in Compound Finance is up by a small 2.64%. This is the largest Token ROI we have seen for $DAI, and it is usually meant to remain pretty steady. This has allowed us to have around 0.19 claimable $COMP - worth around $136.
  • In the Uniswap $AMPL pool, the original 2.5 ETH entered is now down by 48% as it sits at just 1.3 ETH. Despite ETH going down, the total number of $AMPL in the pool is up by a solid 850%. We entered with just 335 $AMPL and now have around 3185 in there. This rise has certainly offset the reduction in $ETH. Note: I did not swap my LP Mining Incentive to Beehive V3 because APY dropped significantly. As a result, there has been no farming for AMPL/ETH over the past few weeks. 
  • Again, in the WETH/JRT pool on Balancer, the initial 0.4 WETHentered is now down by a solid 75% still. From the 0.4 WETH that was entered only 0.1 WETH remains.  The JRT number in the pool is up by a small 26%. However, there is also 1085 JRT to claim with another 1.8 BAL to claim, which helps to turn this into profit, as you will see in the Dollar returns below. NOTE: If you wonder why the WETH is significantly less than the JRT in $ values, the balancer pool is split 90% JRT to 10% WETH.
  • As expected, the Curve and Kyber token numbers have remained the same. Staking KNC on Kyber should keep the same value, and the stablecoins in the Curve pool should also remain pretty similar. However, the rewards are where the profit comes (see $ Value next in the section)
  • Lastly, the Ethereum in the Bancor pool is down by 38.76%. This is a slight improvement on the 53% it was down in the previous update, but the impermanent loss is still doing its thing here. Despite this, the BNT is up by a strong 81.4% (which is down from the 117% in the last update), and there are 13.516 BNT to claim.

 Now, let's take a look at the $ side of the experiment:

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FYI:

  • The TOTAL includes all the Total Accumulated Rewards

Key Takeaways:

  • First of all, over the 49 weeks that I have been doing this, I am up by an enormous $25,955.50 - around 362% ROI. Since the last update, the farming experiment has increased its ROI by another 100% from the total of$25,977 it was previously. Interestingly, the AMPL/WETH LP is no longer my largest return after being taken over by both Bancor and AAVE.
  • As mentioned, the Bancor protocol is now my largest gain as it provides almost a 780% ROI. That means I am up around $7,800 through this farming strategy since starting. It is up by a total of $5,200 since the last update and is largely due to BNT's rising. 
  • The second-largest gainer is the Aave strategy which has provided a total of 720% ROI. Since I started, it is up by $7,240 - largely helped by the strong SNX gains since February.
  • The AMPL/ETH LP returns have now dropped into the third position but have still netted a 715% gain. It is up by $7,660 - although we entered with a marginally higher amount than the other protocols. The slip to third place is because I did not participate in Beehive V3 LP incentive mining. After all, the APY seemed so tiny.
    • NOTE: Although the AMPL/ETH LP reward has dried up, something very interesting happened this month with the entire Ampleforth ecosystem. They released their governance token called $FORTH. As a long-term Liquidity Protivder to both Beehive V1 + V2, I was rewarded an enormous amount of $FORTH. At the current price of $37.70, my $FORTH is worth around $22,900. Putting this into the total profit would mean that I now have a $30,560 profit.
  • The Kyber staking has seen a substantial increase since the last update. Previously, it had provided a small 30.5% ROI which has since increased to 128% ROI - netting a cool $1,300 profit.
  • The Balancer LP is also providing a strong 142% ROI - netting a $1,520 profit. This is largely helped by the $BAL and $JRT rewards provided by this method.
  • The returns on the Compound Finance farming have increased slightly from 9.7% ROI in the last update to the current 15.86% ROI. The profit from this is largely coming from the $COMP rewards earned.
  • Lastly, the Curve strategy has remained pretty stable with a 35% ROI - similar to where it was in the previous update.

Well, that’s all for now, folks! As you can imagine, I am over the moon, with the total portfolio being $33,120 in profit (a CRAZY $66K if we include the $FORTH received). I will continue to share these results over the following weeks if any further developments might interest you.

See all experiment updates here.

 

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Brawnd0
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