Baking Cakes: a DeFi I Like

in LeoFinance2 months ago (edited)

Pancakeswap.Finance is a BSC-based DeFi project. CAKE token recently skyrocketed from like $0.5 to $8, and I think pretty much everybody knows about Pancake by now.

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Besides liquidity pools, Pancake has a nice feature called Syrop pools. They're "one-sided" stake pools for token distributions: you stake CAKE (or another token, depending on the pool's rules) and earn another token in return. E.g. there's a CAKE pool to stake CAKE and earn more CAKE, a LIT pool to stake CAKE and earn LIT, and so on.

About a month ago I (and other Binance clients) was fortunate enough to get 100 TWT tokens as a gift from Mr. CZ of Binance. At that time TWT was not listed on Binance and I had to withdraw it to my Trust wallet (it was Mr. CZ's condition) for a 1 TWT fee. Then I started to research what I could do with my 99 TWTs -- and I found Pancake's syrop pools!

At Pancake my 99 TWTs were worth like $10 at that time. But instead of selling them right away, I staked my TWTs in a syrop pool and started to earn more TWTs. I made it just for fun, mainly because the transaction fees were less than a half-buck overall. When the TWT pool ended, I swapped all my TWTs into CAKEs. It was 20 CAKEs, nearly the same US$10 of the total value, at that time.

I've been pushing my 20 CAKEs in any syrop pool I found appealing. It was fun, and I could afford the fees. I still own some TEN shit staked somewhere, I had EGLD and sold it at $205, I have some LINA shit which is pretty much useless, and LIT, I've made a fraction of CAKE too, and so on. However, I doubt I earned much: a capital of 20 CAKEs is still too little to combat fees. When CAKE price doubled, I sold 10 CAKEs for about the same 10 bucks in total and left another 10 CAKEs for "breeding". And shortly after CAKE has pumped...

Two days ago I went to Pancake to check my pennies and saw a new Syrop pool. It was a COMP pool -- you stake BSC-pegged COMP and earn CAKE. And the pool's APR was like 385000% (three hundred eighty-five thousand percent)!

I quickly grabbed all the cash I had on Binance (about $150), bought 0.3 COMP, hedged them with a short, transferred BSC-pegged COMP to my Trust wallet, and staked it in the pool. With less than $1 of fees overall I was earning some incredible APR at Pancake and also a penny from my short's funding fees.

I'd managed to get about 1.75 CAKE before Pancake's devs came out and said that APR was way higher than intended, because of a mistake in the pool's contract. They launched a new COMP pool, with a much more modest APR of "only" 300% in the beginning.

I sold my 1.75 CAKE for about $14 in total (minus $1 of fees, plus $1 of funding from my useless short). I'm still hodling my 0.3 COMP and 10 CAKE in syrop pools.

That's the DeFi I like! If only I could borrow COMP (or at least any stablecoin) at Binance against my BTC bag...

Dear Pancake devs! Could you please airdrop a "governance token" or something which would pump to thousands of USD?

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That sure takes a lot of moving things around, you must enjoy following all of these things to be able to keep up with it. You should do very well being so far ahead of the curve, most people are like what is Defi?

Posted Using LeoFinance Beta