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 Investment Capital to create and stake DOGS/BUSD LP in the DOGS/BUSD Farm. The farm earns PIGS tokens which will be leveraged to earn $BUSD.
This strategy uses $BUSD to buy DOGS and create DOGS/BUSD LPs. These LPs will be leveraged to earn PIGS ($AFP). The 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 $BUSD rewards.
From the webpage:
PigPen is the Animal Farm’s governance staking pool which allows AFP holders to secure a shared ownership of the Animal Farm platform. This includes BUSD & PIGS dividends generated from deposit/withdrawal fees from Farms & Pools, taxes applied to DOGS transactions, yield earned on lending and Piggy Bank fees. — PigPen page
Visualization of the strategy
Step-by-Step description
Lets go over the steps one by one:
- All of the Investment Capital will be used to buy DOGS ($AFD) and create DOGS/BUSD LPs
- The DOGS/BUSD LPs will be staked in the DOGS/BUSD Farm
- The DOGS/BUSD Farm earn PIGS tokens.
- Claim PIGS ($AFP) from the DOGS/BUSD Farm
- The accrued PIGS ($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 $BUSD will be claimed into the connected crypto wallet.
- Step 4 to 7 can be repeated indefinitely
Execution of the strategy
Let’s have a look at the steps to take on the website.
1. Connect wallet
Click the “Connect Wallet” button on top of the screen in order to connect the crypto wallet which holds the reserved Investment Capital.
2. Buy DOGS ($AFD) tokens
The Investment Capital will be used to create the LPs. First step is to buy the DOGS ($AFD) token with 50% of the $BUSD.
Buy DOGS ($AFD) tokens on the “Swap” page which can be found in the top menu. In the upper field 50% of the total Investment Capital in $BUSD can be entered, in the bottom field the corresponding amount of DOGS will be calculated.
NOTE: always make use of the buy and add liquidity options on the website as opposed to using PancakeSwap. The website eliminates some of the taxes in contrast to PancakeSwap.
3. Create DOGS/BUSD LPs
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 DOGS/BUSD LPs, you will need an equal amount of DOGS and BUSD.
More about Liquidity Pools and Pairs can be found for example on Binance Academy.
The Animal Farm website offers the option to create the LPs in the top menu when hovering the “Liquidity” menu item and clicking the “Add Liquidity DOGS” menu item in the dropdown.
If the crypto wallet is connected the Balances of both the DOGS as well as the BUSD will be displayed below the corresponding logos of the tokens. Clicking “Max” will select all available DOGS tokens and calculates the required BUSD amount in the field below.
NOTE: as a result of price fluctuation it could be that the value of the DOGS compared to the available BUSD is not exactly equal (50–50) as it was meant to be. In that case the input numbers have to be adjusted a little bit to make the values equal again.
After approving DOGS and approving BUSD the “Add Liquidity” button will create the anticipated DOGS/BUSD LP.
The created LPs will be available in the connected Crypto Wallet.
4. Stake DOGS/BUSD LP in the DOGS/BUSD Farm
The Farms can be found in the top menu as a sub-menu item of “Farms”.
Scroll down to the DOGS/BUSD Farm
The available amount of LP will become visible in the left bottom corner of the DOGS/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 DOGS/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 PIGS value and the performance of some of the yield generating activities which happen in the background.
5. Claim PIGS ($AFP) from the DOGS/BUSD farm
The earned PIGS rewards are displayed in the second section from the top. Clicking the “Claim” button will collect the rewards to the connect Crypto Wallet.
6. 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.
7. 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.
8. Wait and repeat
Whenever a significant amount of new PIGS in the DOGS/BUSD Farm and/or BUSD and PIGS in the PigPen are accumulated, these “claim and compounding” steps as described in steps 5 to 7 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:
