I've been wanting to get more risky with some fun DeFi Degen crypto projects as laid out in my last article. I'm not a gambler by nature, but since I consider most of my crypto portfolio to be risk capital I figured "what the hell." Since I have been yield farming on the Binance Smart Chain network I wanted to find a few projects on that network and will be covering one of them today - SAFUU.
Before we proceed, please not this is certainly not financial advice and I would not be surprised if I lose almost everything I'm putting into these projects. These types of projects serve two purposes for me. First, much like many people gambling in Las Vegas I see it simply as entertainment. I want to see if I can time these, get in and get as much of my investment back as soon as possible. It was my birthday week so I consider this as my crypto birthday present to myself along with a Ledger Nano X. Second, I want to learn from these projects. More tokenomics, white papers and communities to get involved with. I am not making huge investments in these type of projects, think around one to 1.5 BNB coin per project or somewhere between $400-$600.
Safuu - the Good
This project is super Degen! I've looked into very similar projects like Titano and Libero but felt I was a little to late to those trains. The same is probably true with Safuu but it was time to jump on one of these trains, I mean how dangerous can it be trying to jump onto a speeding locomotive anyway.
It is also an easy project to get started with. From their homepage you can click on the Safuu homepage and click on the Click Here to Buy Safuu button which will take you to Bogged Finance to swap BNB for Safuu tokens. Once you hold the tokens, rewards are automatically added every 15 minutes so it compounds 96 times everyday.
Sustainable Asset Fund for Universal Users it has some elements that I did like more than the other project mentioned. This is an auto-staking protocol with crazy returns of a fix APY of 383,025.80%.
What set this project apart includes their Safuu Insurance Fund, Safuu Treasury and The Fire Pit. The Safuu Insurance Fund (SIF) aims to provide both price stability and long-term sustainability hold a consistent 0.02355% rebase rate paid to all token holders. The Safuu Treasury was designed to help the SIF if an extreme price drop does occur and also funds new investments, project and marketing costs. The Fire Pit is the token burning mechanism in which 2.5% of all token traded get burnt.
Safuu - the Bad
All these features listed above were built to help the project maintain its rewards and make it last long term. That said, when you simply look at the APY you have to question the whole thing. The developers say that the APY will drop after the first year but I'm not counting on it lasting that long. Then again, Titano has been around since last year which is surprising to me and has a large community of believers.
I expect to see many new projects built on a Titano Fork, if you can continuously get in early and get your initial investment out the remaining profits are all gravy. The question is, like many of these projects, when do you cut bait and get out?
There is also the question of slippage or the cost to get in and out. There is a 14% slippage on buys which is broken out 4% to Automatic LP (return to liquidity), 5% to Safuu Insurance Fund, 2.5% to the Treasury and 2.5% to the Fire Pit (burnt). On selling tokens the slippage is 16%, the same breakdowns as buys except an additional 2% goes to the Treasury making it 4.5% instead of 2.5%.
Honestly, while I've listed the slippage under "the bad" these items to help with the tokenomics overall.
Safuu - the Ugly
The ugly is the hardest part to find on these projects and takes a little more digging. Shills are everywhere and those pushing on YouTube are so bullish you have to question everything they say.
Safuu was delisted by Certik, and if you click on the warning tab it tells you: This project team was affiliated with previous high-risk projects Clever DeFi and Tagz Exchange. CertiK in the process of further investigating.
Much of this centers around the Safuu Founder Bryan Legend.
An account on Twitter named 0xtanjero also had some very interesting things to point out in terms of the platforms code. Oxtanjero pointed out that the Safuu owner can swap out all Saffu tokens for BNB and withdraw them to the treasury at any point in time. Additionally, the owner can update the addresses for the treasury and Saffu Insurance Fund to liquidate those at any time. There are also issues with the Fire address being external instead of a true burn address.
Scared yet? You should be and welcome to DeFi Degen projects, the wild west of crypto.
Conclusion and Results
It's been six days since I first got involved with Safuu. Further research has revealed the "ugly" side of the project so my guard is certainly on high and I'm not recommending this project to anyone. Being relatively new to crypto, I have to take some lumps to become a hardened veteran in the space. I just hope I get lucky on a few projects like this along the way.
I recovered the 14% slippage ($78.44) within four days which was pretty amazing and was back to break even. This was due to both additional coins and price appreciation. I obviously expected my number of coins to increase but the price appreciation was the real kicker. If a platform like this can hold or increase its token's price - look out.
I bought in at $173.57 (2.7437 Safuu) when putting in 1.3 BNB which equated to $560.32 and $481.88 after the slippage. As of writing this today, the Safuu price was around $223, that is a $50 price appreciation which is pretty amazing in just six days and my holdings were worth more than $700 on 3.16527 Safuu. That puts my investment up an average of $23.66 per day which is more than 4% growth a day.
Safuu is certainly a very risky investment, but it is nice to be able to check your wallet every 15 minutes and see it growing without having to do a thing. This is truly a passive investment thus far and I've been happy with the results. Please don't consider anything here financial advice and DYOR (do your own research) before investing.