Lately I was investigating in these so called high yield farming or auto-compounding protocols. Usually I avoid high risks investments, as it is against my personal risk appetite, but I will make an exception to learn something new and discover new fields within the DeFi world. So more to come in the next days as I explore further protocols and also invest into these.
So disclaimer first: Nothing here is financial advise, only my own personal experience and opinion. DYOR.
So what is Ruby Mine?
In short, it is a high risk, but also high reward protocol running on the Avalanche chain. The Whitepaper covers a tiny story about adventurers who discovered a thousands mile long mine and you can hire miners to mine ruby’s for you. The promise is up to 8% daily return in AVAX. Let’s test that.
How is this sustainable?
The liquidity is provided by i) the transaction fee’s: With every buy or sell transaction you pay a fee of 8%. Although the white paper states 6% go into development and 2% into marketing. Also ii) the recommendation is to compound 6 days and withdraw only on day 7. Otherwise there is a decrease of rewards implemented int he protocol. And iii) liquidity is available as long as new users are entering the ruby mines, resp. the contract. There is also a referral system implemented… Did I hear someone saying ponzi-nomics? So if you think to give it a try, better be quick is my impression. The project runs only since April 2022, so still early days I guess…
So lets give this a try:
You need Meta Mask connected to the Avalance C-Chain with some AVAX sitting in it. Given this is a high risk investment, just to mention it again, I put only a tiny amount into it. To stay within my risk appetite.
Steps to mine
- Then head over to www.rubymine.money and connect your Meta Mask (referral link)
- Enter the amount of AVAX you are willing to invest (I invested only 0.25 AVAX, again, high risk)
- Read and accept the disclaimer
- Click on “Hire Miners”
- Profit (soon)
Compounding and taking profits
Once you went for a nap, the next day, you go back to your “mines” and click – as recommended by the whitepaper – on “Re-Hire”. Remember the 6-1 cycle: Re-hire miners 6 times per week and take profits 1 time per week. Taking profits too often will exhaust your mine and therefore decrease your earnings in the short and in the long run. So rehire Day 1 – 6 and on the 7th day you can hit “Collect” to take your deserved profits.
So lets see how and especially how long these mines provide profit. Will provide an update on this shortly.
If you are interested to join the mining experience too, please feel free to use my referral link. No harm on your side, a bit support on my side. Thank you.
Ruby Mine Dashboard: