Introduction
In this series I discuss different strategies on how to leverage the opportunities offered by The Animal Farm ecosystem. Each article in the series will cover a specific strategy in order to keep it as to the point and concise as possible.
We can distinguish four types of strategies
- Simple or Complex ones, and
- Aligned with the ultimate purpose of the platforms vision or deviating from it
Please refer to the following article for an introduction into this series, find out what the most important elements are to be able to develop a strategy and how these strategy types are defined.
https://medium.com/cryptozoa/the-animal-farm-lets-talk-strategies-26865f4df317
Assumptions
- You have clearly defined your personal investment goals
- You understand the vision and purpose of the platform
- You have reserved an investment capital amount in any kind of Crypto to put into The Animal Farm
Strategy description
Type: Simple
Platform purpose alignment: Aligned
Initial required crypto asset: $BUSD
Short description: This is a simple two steps strategy using the native ecosystem token $DRIP, which will generate relative high rewards when leveraged in the Animal Farm platform.
This strategy uses the reserved Investment Capital to create and stake the DRIP/BUSD Liquidity Pair (LP) in order to earn DOGS ($AFD). These DOGS ($AFD) are staked in the Auto-Compounding Dog Pound to earn PIGS ($AFP) eventually. The collected PIGS tokens are staked in the PigPen to earn $BUSD rewards. As a bonus, staked PIGS will accumulate additional PIGS at the same time. These additional tokens can be compounded into the PigPen stake which in turn will earn more $BUSD rewards.
From the webpage:
PigPen is the Animal Farm’s governance staking pool which allows AFP holders to secure a shared ownership of the Animal Farm platform. This includes BUSD & PIGS dividends generated from deposit/withdrawal fees from Farms & Pools, taxes applied to DOGS transactions, yield earned on lending and Piggy Bank fees. — PigPen page
Visualization of the strategy
Step-by-Step description
Lets go over the steps one by one:
- All of the Investment Capital will be used to buy DRIP/BUSD LP
- DRIP/BUSD will be staked in the DRIP/BUSD Core Farm
- This Farm will earn DOGS ($AFD)
- DOGS ($AFD) will be staked in the Auto-compounding Dog Pound
- The staked DOGS ($AFD) will automatically be converted into DOGS/BNB LP which will earn PIGS ($AFP) tokens
- Claim PIGS ($AFP) from the Auto-compounding Dog Pound
- The accrued PIGS ($AFP) tokens are deposited in the PigPen
- Now the staked PIGS ($AFP) start earning dividend in $BUSD as well as in PIGS
- When clicking the “Compound PIGS (Claim BUSD)” button, the PIGS will be compounded into the PigPen, hence, added to the total PigPen staked balance. While at the same time the accumulated $BUSD will be claimed into the connected crypto wallet.
- Step 3 to 6 can be repeated indefinitely
Execution of the strategy
Let’s have a look at the steps to take on the website.
1. Connect wallet
Click the “Connect Wallet” button on top of the screen in order to connect the crypto wallet which holds the reserved Investment Capital.
2. Buy DRIP/BUSD LP tokens
In general Liquidity Pairs have to be created manually on a platform like for example PancakeSwap. A liquidity pair originally will consist of 50% of both involved tokens. In this case when creating DRIP/BUSD LPs, you will need an equal amount of DRIP and BUSD.
More about Liquidity Pools and Pairs can be found for example on Binance Academy.
The Animal Farm platform however offers a contract, called DRIP Liberation, which will create DRIP/BUSD pairs for you using BUSD as input. This is what can be used to generate the required LPs for this strategy.
The DRIP Liberation feature can be found in the top menu, in the “Liquidity” dropdown as can be seen below.
This menu item will redirect you to the “old website” as this functionality isn’t migrated to the new website yet, but planned. NOTE: Always make sure to use the official links from the website, the wiki or the official announcements.
As clearly explained on the webpage (see screenshot below), using DRIP Liberation will save a 10% transaction tax and offers convenience.
After connecting the crypto wallet and Enabling BUSD for this contract, the Investment Capital amount can be filled in the input field on top. The Output will be calculated below. Clicking the Supply button will create the DRIP/BUSD LP, which can be found in your wallet after importing the LP contract address.
That’s all for this first step.
3. Stake DRIP/BUSD LP in the corresponding farm
Next, go back to the animalfarm.app website, more specifically to the Farms page.
The Crypto wallet which is holding the created DRIP/BUSD LP has to be connected as explained in step 1. The available amount of LP will become visible in the left bottom corner of the DRIP/BUSD Farm section. On the right, in the input field, the desired amount of LPs can be filled in.
By clicking the “Stake” button the DRIP/BUSD LP will be staked in the farm and immediately start earning yields. The number on the line of “Apr” is the annualized percentage Yield for this farm at that giving moment in time. This number will fluctuate based on the Total Liquidity in this particular farm, the LP value, the DOGS value and the performance of some of the yield generating activities which happen in the background.
4. Claim DOGS ($AFP) from the DRIP/BUSD Farm
Over time the number of earned DOGS will build up. The amount of DOGS earned is displayed on the second line in the box behind “DOGS Earned”. By clicking the “Claim” button, the accumulated DOGS will be added to the connected Crypto wallet.
After claiming, the farm will continue to generate DOGS rewards.
5. Stake DOGS ($AFD) in the Auto-compounding Dog Pound
Next, go back to the animalfarm.app website, more specifically to the “Dog Pound” page.
The obtained DOGS ($AFD) tokens can be staked in the Dog Pound section a little lower on the page.
In the middle of the section you find two tabs “Stake (Auto-Compounding)” and “Stake (Linear)”. For this strategy the Stake (Auto-Compounding)” should be selected.”
In the input field the anticipated amount of DOGS can be entered, or the “Max” button can be used to set the total.
After clicking the “Stake” button on the bottom, the DOGS will be staked and will become visible in the top row of this particular section.
6. Earned rewards are converted in DOGS/BNB LP
The Dog Pound Auto-compounding pool makes use of Liquidity Pairs to generate PIGS rewards.
In general Liquidity Pairs have to be created manually on a platform like for example PancakeSwap. A liquidity pair originally consists of 50% of both involved tokens. In this case when creating DOGS/BNB LPs, you would need an equal amount of DOGS and BNB.
More about Liquidity Pools and Pairs can be found for example on Binance Academy.
The Auto-compounding pool, however, takes care of creating the LPs and staking them in order to generate PIGS rewards. The only thing required to do is claiming the earned PIGS.
On top of the Dog Pound page the “Total DOGS Staked”, “Total LP Earned”, “Total PIGS Earned” and amount of “Claimable PIGS” are displayed.
At the bottom of the page a section can be found in which the option to withdraw the DOGS/BNB LP is offered. If the LP is withdrawn, no PIGS will be earned as a reward of the Auto-Compounding pool.
7. Claim PIGS ($AFP) from the Auto-compounding Dog Pound
On top of the “Dog Pound” page the statistics, stakes and earned rewards are displayed.
Over time the number of earned PIGS will build up. The amount of PIGS earned is displayed on the first line in the “Auto-Compounding Pool” box behind “Claimable PIGS”. By clicking the “Claim PIGS” button, the accumulated PIGS will be added to the connected Crypto wallet.
After claiming, the Auto-Compounding Pool will continue to generate PIGS earnings.
8. Deposit PIGS in the PigPen
Next up, deposit PIGS tokens in the PigPen which can be found in the top menu. In the input field the amount of PIGS tokens to deposit can be entered. Clicking the “Deposit” button, deposits the entered amount of PIGS into the PigPen. The staked PIGS will start earning BUSD and PIGS dividends immediately.
The amount of BUSD and PIGS which can be claimed will be displayed in the “Reward Center” box.
9. Compound PIGS and claim BUSD
At any given moment the accumulated BUSD and PIGS rewards can be compounded and claimed by clicking the “Compound PIGS (Claim BUSD)” button at the bottom of the box.
The “Staked Balance” amount will increase with the compounded PIGS. The BUSD amount will become available in the connected crypto wallet.
10. Wait and repeat
Whenever a significant amount of new DOGS in the DRIP/BUSD Farm, PIGS in the Dog Pound and/or BUSD and PIGS in the PigPen are accumulated, these “claim and compounding” steps as described in steps 4 and 9 can be repeated.
End of strategy
My referral
If you decide to invest in The Animal Farm yourself, after having done your own research, please consider using my referral link. It’s very much appreciated, thanks!
References
Website:
Wiki
Telegram channel The Animal Farm:
Telegram channel Forex Shark Calls:
