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Hello everyone, my name is Le Dex and I analyze my best strategies in staking and yield farming. Of course, this is not a financial advice and you should do your own research before you invest in anything. Remember DYOR (Do Your Own Research).
In my 3rd episode I will show you my $CRO strategy inside Cronos chain, the new EVM (ETH Virtual Machine) of Crypto.com exchange. We will deal today with $DARK, a currency of DarkVerse which is a protocol with $115.984.734 TVL right now. You can visit their site HERE and this is a very informative Medium Article if you need. $DARK is the first decentralized algorithmic token pegged to $CRO and running on Cronos chain and the teams behind it are bDollar, Soup and my favorite Tomb Finance [ Tomb Finance have another algorithmic token on Fantom Network, Tomb, and they have huge experience on how to peg a token to another currency ].
So, $DARK maintains its peg to 1 $CRO with the following ways:
- When price of $DARK is more than 1$CRO we head to the expansion phase, or simply inflation phase. More $DARK are minted to increase supply through 8 hours blocks to control it. The more supply goes 33% to DAOfund [ a fund that buys when peg is below 1$CRO ] , 2% to Marketing/Development team, and 65% to Boardroom [ Boardroom is a place where you stake the 2nd currency of the team, $SKY, and you receive $DARK]
- When price of $DARK is less than 1$CRO is time for deflating! Users burn $DARK and take profit from this when $DARK is above the peg. HOW? If someone burns his $DARK he will receive $LIGHT (the 3rd currency of DarkVerse) . $LIGHT is a token that represents the peg between $DARK and $CRO. He receives $LIGHT in a low price and when the peg is above 1 he can redeem $LIGHT for $DARK with a profit +++plus a bonus multiplier.
- Treasury. Treasury are $CRO backed for $DARK. They maintain an insurance for the users like this: if for example the supply of $DARK is 100.000 and the treasury contains 50.000$CRO, users can burn $DARK and receive 0.5 $CRO at any time. Right now, $DARK is backed for 0.21 $CRO.
These are few things about the DarkVerse mechanism. However, we will head to our strategy through Beefy Finance and not from their site, because we like "Autocompounding" !!!
First of all, you have to add Cronos Network to Metamask. You can find how to set up your Metamask to Cronos Network HERE . Also, you have to create a Crypto.com account (Referral link) if you don't have already. If you did the first two steps, the next step is to buy $CRO or unstake them from Crypto.com and get ready to transfer them.
From Crypto.com app you hit TRANSFER -> WITHDRAW -> CRYPTO -> CRONOS -> EXTERNAL WALLET -> ADD WALLET -> Choose CRONOS NETWORK tab and paste the wallet address of Metamask. After 24 hours you will be able to withdraw your $CRONOS to that wallet address. (TRANSFER->WITHDRAW-> CRYPTO-> CRONOS-> EXTERNAL WALLET-> the name of the address that you gave. It will take almost 1 min. to your $CRONOS to be transferred to Metamask.
The next step is to go to Beefy Finance and connect our Metamask. Go to https://beefy.finance/ and choose Cronos Chain
Then you can see All Vaults and choose DARK-CRO vault with left click anywhere inside vault:
And hit " Buy Token " . You will be transferred to MMF mm.finance and you will be ready to swap $CRO for $DARK:
Swap half of your $CRO for $DARK (keep in my mind that you will need 5-10 $CRO to pay fees for the smart contract, so calculate half without them!)
After the transaction is completed, move back to Beefy Vault and instead of " Buy Token " this time hit " Add Liquidity " . This time you will be moved to MMF Add Liquidity :
Use the MAX amount of your $DARK and click Deposit. For every transaction you will have first to APPROVE that you let any Dapp interact with your $CRO or $DARK into their smart contracts. You can't see it in my screenshots cuz I don't have my wallet connected and I have already approved it! So, before you hit Deposit you will need first to APPROVE $DARK.
After you add liquidity you will receive DARK-CRO LP. Move back to Beefy's Vault DARK-CRO and you should see the balance of your LP appearing there:
APPROVE DARK-CRO LP and after that DEPOSIT your 100% of your LP. After the transaction is completed, you are ready to earn 0.75% daily autocompounding. The rewards are automatically transformed into new LP and increase your deposited balance!
Good Job !!!
ADVANTAGES
- Extremely High APY . These guys found a way to pay good for the risk you take to move your $CRO out of crypto.com app, 0.77% DAILY.
- No risk of impermanent loss. When you add liquidity to any pool there is always a chance of the different price action of the two tokens which will lead to impermanent loss. $DARK maintains its peg to $CRO for more than 2 month now, with an algorithmic mechanism that I analyzed above. So farming in that pool is almost like Staking your $CRO.
- Tomb Finance team behind $DARK. I really like Tomb Finance team because they are very successful and experienced to these algorithmic mechanisms. They already have $TOMB pegged to $FANTOM for a long time and a lot of people (including me) are making profits from it! You can follow them in twitter: Tomb Finance twitter
- Total Value Locked $4.22M. $4.22M value locked is not a blue chip's value but shows us that people are trusting it in beefy finance. Also, in DarkVerse the TVL is around $115M too!
- Sustainable APY. Although you see a really high APY that concerns you, there is a reason for this high APY and the best part is that with the algorithmic mechanism they don't inflate the token such as other DAOs.
- Auto-compounding rewards. Guys, I'm lazy. I don't like manually compounding my rewards every 1-2 days, so beefy's smart contracts do this work for me and I will take it!!!
- Insurance. You can insure your money from hacking through Beefy Finance. I will make an article about this in the future.
RISKS
- Hacking the smart contract. This is a risk that you always take through smart contracts. MMF has made Audit, however, this chance is always in the game of Decentralized Finance.
- Impermanent loss. Although, I really like the mechanism of Dark-Cro peg, and it's something that has already succeeded, there is always a chance of thing don't work and we have seen bad things happening in bear markets!
- Lower APY. I know that the APY is extremely high right now but if big funds move into our smart contract, this will make the APY fall ( It will still be much more than Crypto.com though)
This is my own strategy to stake my $CRO and farm with them. What I like in periods like this, that the markets are bleeding, is to make my crypto work for me and building for the next bull market. BUT , remember to do your own research before you invest in Decentralized Finance. Do not listen to anyone, not even me, without doing your homework!
I will be pleased to answer any questions about my strategy down below the comments or message me in Twitter @LeandrosDim. See you around, next week!
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- SOLANA : 5emxBQPgyqB8JQkwPQiRKWXKp3u1A4LeAyryaPpiaLzY
