Welcome to the third edition of My Passive Income Stream. I released my first income stream in the August Edition two months ago and since then the markets have not faired well so my passive income is down a bit. As with anything else in life, you learn, adapt and grow stronger. This month I've started moving into a new areas that I expect to do well in bear markets to even out my passive income portfolio - more on that in a bit.
Being truly passive (lazy as some might call it), I'm excluding "earned" income from sites like Publish0x, read.cash, Presearch, Torum, Brave, etc. that others include in their monthly figures since they are focused on "all" earnings. I am not including minor income from exchanges like KuCoin and Crypto.com that offer minimal yield returns nor any income from crypto mining which while primarily passive does require minimal attention which is quite an annoyance. To be honest, I'm not even mining right now given the profitability levels.
I do not include what I consider active income including some new streams I'm working on including NFTs, ebooks and a YouTube channel that is in the works. On top of that, I will be launching a crypto project soon that I'm very excited about, but that won't be considered as passive income - stay tuned for that update later in the month. There is just so much to do in crypto...
So what do I include in my passive income stream? I am including sites where I may have to push a couple of buttons a day, week or month, but that is the extent of all the hard work I'm willing to do and still consider it passive. The numbers presented are based on the daily income from each stream as of the first day of the month. I am breaking the income into two categories, "DeFi and other Income Streams" along with "Yield Farming" before presenting the overall total. Here you can see a breakdown of exactly how much I am generating from each source.
In September I wanted to replace Liquid Capital, a project that ended in August, in the "DeFi and Other Income Streams" category and bump up this category quite a bit so I've added two new projects - StableFund and Wealth Mountain. I considered a number of other projects including MDB (Make DeFi Better), The Bandit Project, AlphaShares, Ace Miners, Furio, and Optimus. After researching them all I settled on two projects with rewards in primarily paid back stable coins to help offset the current volatility in the market.
DeFi and Other Income Streams
- YieldNodes = $9.35 (master nodes, down $0.25)
- SAFUU = $2.77 (rebase token, down $2.77)
- Midas Investments = $0.71 (CeFi exchange, down $0.03)
- Hydro Whales Mining Club = $0.00 (NFT BTC mining project)
- Wealth Mountain = $4.50 (stable coin staking platform, new in USDC on Polygon)
- StableFund = $16.27 (trading bots, new $16.27 total, $1.27 from MATIC, $15.00 from BUSD)
- TOTAL = $34.15 per day (up $17.74)
StableFund pays out 1.5% a day from AI (artificial intelligence) trading bot rewards. Whether the market is up or down it pays. I started initially with a small investment in MATIC to test out the platform before adding a second small investment in MATIC. Of course, since rewards are paid in MATIC there is some price fluctuation. I recently added 1,000 BUSD into the platform which will pay initially $15/day (1.5%) until I start compounding. I like the idea of a very stable income from this with no market fluctuation. The move here basically doubled my passive income from this category from the prior month.
As a side note, I've also been messing around with Python building my own trading bots and testing them against the market but not including this as passive income.
Wealth Mountain is a project I invested in just a couple of days ago. I see this as a very high risk play, but invested some USDC on the Polygon network to test it out with a decent amount of capital but not so much that if I lost it all I would fret about it. They return here is 1% per day initially, but that goes up to 5% after time with prior rewards retroactively increased at each time interval. By collecting funds, you reset the rewards back to 1%. There is also a 10% fee to get in and another 10% to get out. My plan in this one is to get back double my investment and pull out my initial capital as quickly as possible. I'll write an article on this protocol in the next week or so to dive in deeper.
These two new projects have added over $20/day to my passive income and should grow nicely over time if they can sustain in the long-run.
Safuu had plummeted in price and is something I'm close to writing off. They are launching their own blockchain which is interesting and we are being asked to "sacrifice" our Safuu for SaffuX in the next month or so.
YieldNodes returned 5.3% in September as it always gives a positive return. This was the lowest monthly return I've received in the platform. I base my monthly return here by multiplying the total amount I have invested by the average monthly return I've had which works out to 7.0% after adding in September. Even though my total value went up, the decline in average monthly return brought down how I calculate the monthly income as did the drop in the euro (in which it is based) to the dollar.
Midas Investments is a CeFi exchange that I hold some Bitcoin and Ethereum on, in addition to their native token MIDAS. I have to wait about another four months before the Hydro Whales Mining Club starts producing income. That said, the floor of the NFTs has risen to 1.71 ETH from my purchase price of .29 ETH each for my two NFTs in July which is huge price appreciation.
Yield Farming
- EMP Money = $34.17, down $11.99 (Detonator = $27.70 Farms = $4.08, Reactor = $1.98, Nodes = $0.36, Autovault = $0.06)
- The Animal Farm = $15.64, up $4.62 (Piggy Bank = $20.26, Farms = $0.00)
- DEX Finance = $1.07, down $3.51 (Farms = $0.72 Regulation = $0.35)
- PancakeSwap = $0.09, up $0.02
- TOTAL = $55.59 per day, down $10.86
EMP Money is my biggest yield farm and I made a few moves within the platform in back in August. As Ethereum has fallen, so has EMP Money which is pegged to the second largest cryptocurrency. With ETH taking a big fall in September, the income from EMP Money fell significantly last month. I've also take some rewards out of it to invest in StableFunds and I missed a number of compounding opportunities this last month which I need to do a better job with going forward. I've adjusted my phone alarms to synch with all the different timing requirements of my various yield farms compounding timeframes.
DEX Finance had another poor month which was disappointing. Since it is pegged to USDC, I had hoped it would do well as a "safe haven" during market drops but this hasn't been the case. Since they have a unique reward token, which is essentially a mutual fund like collection of blue chip cryptos the market brought these reward down. The issue here has been a tumble reward APRs so it will be interesting to see how they address that.
The Animal Farm is still largely paused with a restart of the farms set for October and I have have LP tokens waiting to start working again so another small income stream should kick in before the end of the month. With the farms finally set to relaunch, the tokens within the ecosystem took a nice jump at the end of the month so I had a nice gain in the Piggy Bank.
Total Passive Income
- DeFi and Other Income Streams = $34.15
- Yield Farming = $55.95
- TOTAL = $82.86 per day (up $6.88)
The total passive daily income from these sources is $3.74 per hour or $82.86 per day since I make income 24 hours per day unlike a day job which usually only pays for eight hours. This also equates to $32,744 per year, no weekend or holidays taken off here, which isn't too bad for hitting a few buttons.
I was able to make up for losses with my two new investments and I believe both of those will help stabilize the income stream going forward since they are built around stable funds primarily.
My goal is to grow my passive income to $300 per day, or $109,500 per year, by July 1 of 2023. This would be no problem if the market returned to its highs as it would basically triple my passive income as a result. But I'm not counting on this to happen. The real beauty in this passive income stream is that unlike a "real job" income stream, which is dependent on raises to increase, this passive income stream increases over time naturally by simply compounding my rewards.
Like all investments, these figures will fluctuate and will still go down in a bad month as it did in both August and September. Overall, these investments have continued to outperform my non-income producing assets like stocks or crypto coin/token holdings during the current bear market.
For October I will be highly focused on my new project with three months to go until full launch - probably something quite "degen" to spice things up. I also plan to release a book about yield farming on Amazon this month pending a final edit and getting it into the right formats for both digital and print versions. I'd like to invest in another project with a small amount of profits from the EMP Money yield farm to get another passive income stream going but I may also go a little heavier into the MATIC side of StableFund as well. With the Animal Farm farms restarting, I will probably look to add some more to my DeFi category as that side I want to bring up closer to my yield farming revenue. Until next months update...
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