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
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.
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
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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