yield

Next Defi Destination – Animal Farm

Leave a Comment

Our next step on our Defi journey will be the Animal Farm. Nope, nothing to do with the book of George Orwell, but more with Forex Shark. He is the founder and developer of the Drip Network. As you probably guessed in this second, these two Defi powerhouses will be closely linked together.

The Animal Farm goes live in 3 days, so on October 18th. As I started to see and read more about it, I wanted to understand it myself. So here is a first high-level overview of the Animal Farm.

What is the Animal Farm?

As per the Whitepaper of the Animal Farm, it is the first deflationary, fully decentralized ownership yield farm and lending protocol in Defi. Participants earn as owners of the network through a governance token. The main focus of the Animal Farm is on lending and yield aggregation. A simple comparison would be, as per my basic understanding so far, Pancake Swap.

There are two native tokens in the Animal Farm, or you could say animals: PIGS (AFP) and DOGS (AFD). The PIGS are the governance tokens of the platform, while the DOGS are the native farming tokens. Both tokens should support each others through their unique tokenomics.

If you stake PIGS, the governance token, into the PigPen you are one of the owner of the Animal Farm. This allows you to farm even more PIGS and BUSD. Pigs can be re-compounded and BUSD claimed (and re-invested if you like).

Loyalty System

The vesting model of the Animal Farm goal is to incentivize investors to not sell (dump) their assets, but to earn dividends in form of BNB and BUSD tokens. This should keep the prices of the native tokens stable or preferable to let them grow over time.

The variable tax on DOGS (AFD) token transactions start with a transaction tax between 6 and 90%. If you stake in the Dog Pound, this is like the loyalty pool in my understanding, you will reduce the DOGS tax by 0.75 to 1% a day while earning BNB or PIGS (AFP) as dividends. This is intended as another stability measure on the native tokens.

Dynamic Emission Rate

Another price stability measure for the native tokens: The dynamic Emission Rate is based on the current demand of the Animal Farm tokens. As every market there will be demand and supply. So higher the Demand, the higher the price, the higher the Emission Rate. So if the tokens reaches an all-time high (ATH) the emission rate will be set to 100% and will remain there until there is a price drop of at least 25%. A pictures says more then 1’000 words, so here it is:

And what is the relation to Drip?

As a Drip user (if you are not, please see team links below) you will have finally a utility for your Drip tokens. And I am sure, this was one of the reasons, why the Animal Farm was created: There will be Liquidity Farms using Drip. Yes, you can Yield Farm with your Drip tokens. The pairs which are visible in the Animal Farm already are DRIP/BUSD and DRIP/USDC. You can choose if you like to farm more PIGS or more DOGS. The APR’s are not yet known.

So far to a first introduction to the Animal Farm. More to follow soon, as I got more to learn myself here.

Have a great weekend.

Team / Referral links / Support

Would you like to be part of the system? Please use my referral link to support my work. Thank you.

https://defi.animalfarm.app/piggy-bank/0x766D22F6595F86De27d981f5CBc00119E4B23B63

0x766D22F6595F86De27d981f5CBc00119E4B23B63

Drip: If you are not yet part of the Drip Network, please feel free to join my team here:

https://drip.community/faucet?buddy=0xb3C253D80578f569cFd4fe2E916EDbF01B384577

0xb3C253D80578f569cFd4fe2E916EDbF01B384577

Up to 8% daily? Lets give it a try – Enter the Ruby Mine

Leave a Comment

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:

Prerequisite:

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

  1. Then head over to www.rubymine.money and connect your Meta Mask (referral link)
  2. Enter the amount of AVAX you are willing to invest (I invested only 0.25 AVAX, again, high risk)
  3. Read and accept the disclaimer
  4. Click on “Hire Miners”
  5. 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.

https://www.rubymine.money?ref=0xb3c253d80578f569cfd4fe2e916edbf01b384577

Whitepaper

Ruby Mine Dashboard: