First Crypto based DeFi Investment Experience/Learnings/Suggestions

LeoFinance
1 month ago
(edited)
4 Min Read
889 Words

Crypto-based Decentralised Finance is not a "New Thing" in the market and already millions of Investors invested and the whole market size is in Billions of Dollars.

I always read blogs about people sharing experiences with DeFi and How are they making much bigger and stable returns from their hard-earned investments. I never invested my money because I didn't have that much money to lose but I never asked myself as How much money do I need?

Finally, I decided and took $300 from my savings and bought BNB(BEP20 Token for Transactions on Binance Smart Chain).
Now I was in a dilemma as I read about many DeFi Projects but I decided to choose the 2 best DeFi projects as per my Quality Indicators and Trust Factors.


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I choose Cub Finance and Pancake Swap then I transferred my BNB to my Metamask Wallet and then I was ready to Invest. But wait, that's not enough!

When I scrolled the Farms section of Pancake Swap I found too many farms and I was confused and was unable to choose, then I decided to go with the highest APR.

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I choose Marsh-BNB, I invested $100 in this Farm and was ready to experience the DeFi for the first time. Next-Day when I checked my wallet I found few fractions of Cake tokens worth around $1. It felt good to see that investment growing and showing results so quickly but we have a twist over here!

Marsh Value fell by 30% and my whole Investment of $100 came down to $85 and this is really concerning because while selecting the best farm for the investment I choose one which had the highest APR but I never researched the Token. What a silly mistake!

At this point, I learned a lesson that Highest APR is not always the best choice. We should always research the token on various platforms.

Before making Investment We should always ask ourselves a simple question
What would be the Time Frame of this Investment?

If you believe in any Token and its Project and are planning to hold it for a longer time then DeFi is a good option for you to grow your Investment with much more speed.

So, back to the story
I saw Marsh's price crashed by 30% then I decided to exit from this Farm but I had a very important question in my mind, In Which Farm to Invest Now?

As I was investing my money for a very long duration of time and I was ready to take the risk to lose my investment so I decided to go with ODDZ-BNB LP Farm.

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I choose Oddz Protocol(ODGG) because I liked their idea and its whitepaper and I was already ready to wait for a longer duration of time.

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After Investment the prices of both BNB and ODDZ fell so this investment is now worth $61 which is around a 39% loss till now but I am betting on its Future so I'll just keep calm and leave it for few months there.

After 10 Days of Investment in ODDZ-BNB Farm on Pancake Swap, this investment gave $5 worth of Intrest in Cake Tokens, The interest rate right now would be around 182% Per Annum. This is not bad as we are also betting on the price of Cake.

Now as I already had a little experience in DeFi World I was ready for my next investment and I choose Cub Finance because its ratings given by the investors are very High.

I choose CUB-BUSD LP Farm as BUSD is a stable coin so I am only betting on the prices of Cub. I invested a total of $100 in this Farm and within few days the prices of CUB rose by 20% which means the capital investment rose by 10%.

After 10 days this investment generated 10 CUB worth $8 as per the present price. This means that this investment is giving Intrest Returns of around 300% Per Annum in the form of CUB Tokens. I am also staking CUB which is a wiser option if you choose to Invest longer and by this rate, this investment would generate around 360 CUB tokens in a Year. According to me the price of 1 CUB would be at least $3 till mid-2022. So our expected return from this investment in the form of Intrest would be 360CUBx$3= $1080/- which would be 10x or 1000% Per Annum.
**Note: This is just a speculation **

But you should not harvest daily as you might end up giving too many small transaction fees. Harvest in 10 days if possible.

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As per the performance of these two investments I can clearly say that the Cub Finance investment is growing faster and the prices of this investment remain less volatile because of one stable coin. You can choose both stable coins LP Farms on Pancake Swap but the APR would be low around 7-10% still that would be a stable return with minimal risk.

I hope you gained some information about DeFi and its potential to increase the value of your investments. You can also read on How to set up your wallet and other informative blogs about DeFi on LeoFinace.


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Posted Using LeoFinance Beta