I get it, everyone here hates BSC because it’s “centralized,” and to that I counter it’s no more centralized than Polygon (got hacked twice and tried to sweep it under the rug only to be brought down later on by a flower picking game), AVAX (Non-deterministic bug & VC controlled), Arbitrum(Sequencer suspended for hours), Solana (keeps crashing and owned by notorious mop-headed PnD-er), Terra(You can’t just mint USD out of thin air, only JPOW is allowed to do that)
There’s no guarantee any of the above chain will still be around in 3 years, but I’m 110% sure BTC, ETH and BSC/Binance will. Btw Binance CEO is #11 on the world rich list right now.
https://edition.cnn.com/2022/01/11/business/binance-changpeng-zhao-net-worth-intl-hnk/index.html
With such a visible international profile not the type of guy that could just rugpull everyone and disappear.
Now Let’s take a look at BTCB-BUSD Pancakeswap LP stats, 19% APR. I know, just meh right ? especially compared to Time and OHM 80,000% APY ? Uhm ok, but there’s a good chance that BTCB-BUSD won’t free fall 99% like what those two ponzi’s did and it will likely put you in actual profit come year’s end.
if you hold it for one year, you’ll get the following profit profile vs. holding single assets
https://docs.google.com/spreadsheets/d/1EaTGzeCi8cVVL5pybn7ZoykMTT-EJSKZBwKBrFyqwGk/edit?usp=sharing
Nice huh? BTC can go down a further 30% to ~26k USD and you’d still make money while the “impermanent loss” would only kick in if BTC goes up 150% or to about 100K USD in price. Sure, if you think BTC will hit 200k by July, this play is not for you, but what if you’re wrong? Wouldn’t it make sense to hedge your bet a bit?
Some “veteran” liquidity providers may counter that LP fees decline in a bear market since no one will actively trade the asset. Uh-huh, for Uniswap, yes, for Pancakeswap, no, since the LP fees are just a small component of the total APR in which the farming rewards in CAKE tokens consist of a big chunk of.
BTC-BUSD LP stats LP Fees: 7% LP rewards: 12%
B-but reward tokens are very inflationary, you say? Well CAKE did drop substantially during January’s dip but not as much as all the other farming reward tokens like SUSHI(-70%) for example.
Check the latest CAKE supply chart here.
https://np.reddit.com/r/pancakeswap/comments/s0mmv6/cake_supply_monitor_0007_20220110/
Yep, it’s approaching deflationary tokenomics
Many wonder how this came to be, conspiracies abound, but a straightforward way to look at it is this
Coinbase quarterly report
They made 400M USD in net profit the last Q, now compare that to Binance that does 4X Coinbase daily volume,
https://coinmarketcap.com/rankings/exchanges/
assuming a conservative 2X of net profit that would still give the Big yellow B 800M USD of dry powder each Q, I’m guessing some of it are spent propping up CAKE prices.
TL;DR: BTCB-BUSD LP is the no-brainer position to have right now.
And don’t forget to boost your APYs, best put those LPs into a yield optimizer’s vault; I’m not gonna say the name of my yield optimizer as I believe most of you already know it by now but am gonna give some hints;
The feeling you get when you look at green candles Dangerous African animal responsible for killing hundreds annually that may appear obese and docile but can actually run up to 30 mph Full stop 85% of Iowa
If you’re able to figure out the above then you’re smart enough to make money farming USD quoted LP pairs in BSC.
submitted by /u/indonesian_activist
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