295% APY Returns With Sun Yield Farming

in LeoFinancelast month

Hey Yield Farmers

The title is pretty misleading and "clickbaity" especially considering the values I put in and shows how you can manipulate numbers and percentages to attract investors. I decided to check up on a farm I'd been messing with for the past 9 days and report back on my findings.

The De-Fi space is going nuts at the moment and being honest, a lot of it is gambling, I wouldn't say I like throwing good money after bad, but my curiosity and learning about the space does tend to get the better of me. I recently got into Sun.io a yield farming experiment by TRON and threw a few bucks it's way to see what would happen.

I first took part in the genesis mining and staked 1600 TRON ($0.02680961 at a current price according to @coingecko). That leaves me with $43 to invest in the farm. I got in on the 11 of September and was able to earn 0.16341 SUN (current value $3.49) as sun token is worth $21.15 each dropping -68.2% since its ATH 10 days ago $66.45

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After the Genesis mining

After the genesis, I dropped in the TRX pool where you stake TRON and earn Sun the process and sharing a current APY of %75. This is the most modest of the farms with liquidity pairs also available.

Screenshot 20200920 at 17.04.16.png

If you wanted to earn bigger APR's

  • You could buy SUN/TRX - 611% APR
  • You could buy and stake JST/TRX - 616% APR
  • You could buy and stake USDT/TRX - 174% APR

Screenshot 20200920 at 17.04.08.png

Calculating APR is tough and misleading

In these DE-FI pools, it's very difficult to calculate the return on the investment as you're placing a token that moves up and down, to earn another token that moves up and down. At least TRON remains fairly stable between $0.026- $0.03, so it makes calculating a little bit easier.

I decided the best way would be to work it out in dollars to try and give you a floating return rate. So I've staked $43 for 9 days and earned $3.49

That's 0.38 cents a day at current SUN token price.

If we take that over a year/365 days, I'd earn $141 if the price remains static.

$141 from a $43 investment is 295% APR.

As you can probably tell if TRON goes up, then my APR decreases, if SUN goes up my APR increases. So it's all a bit up in the air, and because of this, I think a lot of people in the yield farming gaming are already losing money and have not realised it due to the miscalculations.

Pros of TRON DE-FI

It's cheap since Tron is worth less than 3 cents it makes it ridiculously cheap to use the network, you don't have to worry about the speed of the network either since not a lot of users are on it to transactions fly through pretty quickly, since the network is still pretty centralised.

In addition, TRON link is so similar to Meta Mask; you won't feel out of place using the wallet.

Taking a chance

I personally wouldn't try yield farming with a large amount of capital, and it's more of an experiment, and I'm willing to lose $42 to dip my toe in the market.

I have no idea what the plan to do with this Sun token, and it looks like it will be just another meme shit coin, but while the craze is going, I'm going to continue milking the TRON network as long as I can and learning more about DE-FI at a lower cost since the fees are so minuscule on TRON.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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Comparing with farming via Eth blockchain, Tron blockchain has very low transaction fee for those who do not staked their trx for bandwidth and energy. TRX has also maintained at a reasonable price if you have purchased recently. You actually did not lose a single cent of you $43 even if you decide to stop staking and sell your trx. Profit should still be on your side.
!tip

That’s a good point I also only learned about that recently if you stake and get energy you can basically transact for free which is awesome! If I do get deeper into it I would defs stake for some energy

I’m keen to see what happens with this sun token since there’s only a few million around I think 21 mil

i don't get defi but i think thats easier then traditional ways

Traditional ways are very much hands off where DE-FI you have to find places yourself to put your money to work it’s also no gaurentee of profits there are plenty who will lose money in DE-Fi too

I always found Defi pretty complex and more ever, I am still not sure, from where the money comes. Isn't all from trading fees ?

Yes that is the theory behind liquidity pools where you make markets and earn the fees but these yield farms are basically Ponzi schemes they rely on a crazy starting interest rate that gets created by inflation of a new shit coin and as more people come in to push interest rates down by adding more capital they buy more of the coin supply and pump up the token price

It’s not sustainable that’s for sure

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