100% The Next Big Thing In DeFi (+4 Strategies)

I have been in the crypto and DeFi world for a while now and, just like you I assume, I have seen several hypes come and go like waves in the ocean. Ranging from decentralized exchanges and Swap platforms popping up everywhere, to NFTs, ROI Dapps, BNB miners, and Rebase Tokens, the list goes on.

Each time a new innovation is brought to the market, multiple teams jump on it to fork the original code and launch their version of it with only minor adjustments. A new proposition kills the current hype and starts the next one.

Out of each hype only a small number of projects survive, while the rest dies and you never hear from them again. Most of the time there is a huge challenge with regard to sustainability for each of these propositions which haven’t been solved in the copies either. Only if you generate most attention you might stay alive.

Now just two weeks ago, we saw a new product launched. It’s truly something unique and innovative. It’s the Next Best Thing in DeFi for sure at this moment! I have to say, this one might have solved the sustainability problem.

So, let’s take a closer look and see what it is all about.

Cracking the Sustainability Code

We’ve all seen (and been part of it, let’s admit) the rise and fall of ROI Dapps and BNB miners that promised high returns of 1% (or more) daily, based on your investment.

However, the BNB miners faced issues when the treasury drained due to a lack of new funds.

The ROI Dapps tried to overcome this by rewarding investors with the project’s native token, which could be printed endlessly. But this resulted in strong devaluation of the value of the token.

The issue was high liabilities and inflation, which were a result of the possibility for investors to hyper-compound. With no fresh funding, the pay-outs decreased in dollar value at an accelerating rate making them worthless.

But now, there is a solution that still offers attractive ROI while avoiding hyper-compounding. This innovation has been implemented in Elephant Money Futures and is part of the Elephant Money ecosystem.

Non-hyper-compounding BUSD Cashflow Engine

Alright, as said, we have seen hypes come and go. So why would this one be different?

Following the description on the webpage, Elephant Money Futures is:

[..] is a high yield cashflow engine that earns 0.5% daily on cash. Deposit 200+ BUSD and immediately start earning yield insured by the ELEPHANT Treasury. From there you can use many strategies to grow a nest egg, smooth out cashflow, or simply grow profits before entering ELEPHANT or the Farms. — Elephant Money Futures

It is important it know the mechanics behind this product. 0.5% yield daily on your account balance still sounds a lot like how those ROI Dapps work. But the innovative part can be found in the way the investor is able to and has to manage his account.

As stated the minimum deposit is 200 $BUSD. After which the account will immediately start earning yields. But compounding the earned yields can only be done by a new deposit, of at least 200 $BUSD.

Putting it differently, the initial investment is fresh capital. In addition to that, in order to compound the rewards and grow your account additional fresh capital is required.

These are only some of the fundamentals, there are more.

More Sustainability Measures

In the previous section the basic elements are described, but there are additional mechanics which play a significant role in the tokenomics for this product.

The promised strategies are coming a bit further below, but it is important to really understand how the product works before you start playing around with the strategy calculator.

Lets get to it.

Claims are deducted from your balance

Once you claim your earned rewards, which you could do at any time you like, the claimed amount will be deducted from your account balance. In contrast to the ROI Dapps which we discussed earlier.

This means that the daily payout, although it remains at 0.5%, will be lower since your account value is lower.

Max Balance and Payout

A maximum balance of 1 Million $BUSD can be reached. Once reached rewards cannot be compounded anymore and now additional funds can be added.

Maximum payout is 2.5 Million $BUSD per account. Which is the result of a daily 0.5% yield in combination with some additional mechanics.

Decreasing Daily Yield Rate

To overcome the huge effect of big accounts compounding their daily rewards with small additional amounts (200 BUSD required) the protocol will decrease the Daily Yield Rate.

If the difference between the compounded amount and the deposited amount in your balance is bigger than 50k BUSD, the daily rate will start to decrease in steps. As follows:

• 0.5% up to 50k
• 0.45% between 50k and 250k
• 0.425% between 250k and 500k
• 0.375% between 500k and 750k
• 0.325% between 750k and 1 Million
• 0.25% from 1 Million onwards

Max Rewards Before Compounding

The final element which makes sure a consistent money flow is created is the max of 50k rewards which can be earned in an account. Once 50k rewards are earned the investor has to do a deposit to compound his earnings and continue earning rewards again.

Is That Truly Sustainable?

Well, the product on its own might not… However, also that is taking care of within the broader Elephant Money ecosystem. The protocol already manages a treasury, titled Bertha, holding over 13 Million BUSD (and growing fast) supporting the liabilities.

In fact, Bertha is the reason why a copy of this product might not last too long. Because:

You can Fork the Contract, but you Can’t Fork Bertha!

For a more detailed explanation of the power of Bertha I’d recommend to watch this YouTube video.

Let’s Talk Strategies

Now with these type of products we see strategy calculators offered by community members all the time. We are lucky to have smart people in the Herd as well, who are able to fit all these mechanics in a strategy calculator.

For now I wanted to share 2 specific strategies which were covered in a nice visual by one of the Herd members.

Below you find one Monthly and one Weekly Compounding strategy as an example. You can use your own numbers of course. Just remember the 200 BUSD minimum for any strategy you’d like to apply.

Initial Deposit 1000 BUSD; Compound once a Month with 200 BUSD

Initial Deposit 1000 BUSD; Compound once a Week with 200 BUSD

As said these are just two example strategies. You definitely have to play around with the calculator as shared below. A “how to” video can be found on YouTube explaining all elements of the calculator.

https://docs.google.com/spreadsheets/d/1Kb2RKWRYKlXTylLHXDlSrjWPdSNkTbUPw7MHerOzD9E/edit?usp=share_link

Wrapping up

Now that we have burnt our hands and money so many times already, lets not fall for the same traps anymore. From now on let’s only invest in seasoned, battle tested protocols. No more Degen plays.

Some days ago I shared in the community chat:

A dollar is a dollar, if you loose it in a gamble its gone. So better put the dollar where you know for sure it will give you a return. No more gambling.

Ready to join the Herd?

Check out the benefits of becoming a member of the Herd and how to join.

https://medium.com/coinmonks/5-benefits-of-being-part-of-the-herd-1-bonus-1cc5886c02c

References

Website: https://elephant.money/

Whitepaper: https://elephant.money/media/elephant-wp.pdf

Telegram: https://t.me/elephant_money

Medium: https://medium.com/@bankteller

Linktree: https://linktr.ee/elephant_bootcamp

Dune Dashboards: https://dune.com/dedalus/Elephant-Money-Treasuries-and-Liquidity

Futures Strategy Calculator