Hello SPIers. I'll not be writing about this again for a while but I have another update to do about our EMP investment. The reason is, I've upped our investment and we've reached our cap for EMP investing so I have 5 days of full earning to show you guys why I decided to go harder into EMP.
So briefly going back to the start. I researched this project for 3-4 weeks, tested it on my personal account for 2 weeks after that and then put around $5k into the EMP/ETH LP on auto vaults for SPI. Saturday just passed, I used 10 ETH and invested it into the normal EMP/ETH LP farm. This was 5 days ago and we've earned good harvests since then. No more investment will be made here because we dont have any more ETH.
Quickly, what is EMP?
EMP is an algocoin that is pegged to Ethereum's price at 4000 EMP to 1 ETH. Basically, a farm token that is pegged to ETH so way less risk is involved as long as the peg holds. We all know farm tokens in a general drop in value so being able to farm something that is pegged to ETH feels like pretty cha-ching to me. It has 7 founders, abrockman is one of them and they are very open, with no problems showing faces and going on podcasts, doing AMAs and stuff. Oh, and it's been operating for 4-5 months already.
Right, let's get down to business and have a look at some numbers and see how it's performing for us.
First off, I went into the EMP/ETH auto vault on the EMP farm for $5k(1). This was 19 days ago, about 1 day later I removed 50% of the LP to add it to another EMP/ETH auto vault on a different farm called Dibs (2). Dibs offers a little higher APY and I wanted to race them to see by much the other farm earned compared to the EMP farm. The other farm is partnered with EMP, it looks like a clone of EMP but uses BNB instead of ETH. Lastly, 10 days ago we had about $1200 BUSD sitting on Binance so thought ok, convert that to ETH as well and deposit it(3). I split this between the 2 farms. Here's is the autofarm on EMP farm.
You can see that the auto farm has grown our EMP/ETH LP token by 7% in the 19 days from getting into this so im happy with that as it's 100% passive and will/should just grow and auto compound.
After i split (2) and invested it on Dibs, this is how its been going
This is showing as 13% in 19 days. I think this one shows as higher because nothing as been withdrawn from it. The dollar value of the DIBs farm compared to the EMP farm is $32 more so we'll just leave them both as is and i'll check in on them once a week are so.
Autovaluts are boring as there's no work, no strategy involved, you stake and forget about it. Let's move on to our core investment on EMP. We had 10 ETH on CUBfinance earning 14% and droppings so it was time to move elsewhere and being able to use it in a farm that uses a token pegged to ETH is perfect. The risk is EMP losing its peg and never recovering. I should point out that when i converted our ETH in the EMP/ETH LP, the EMP token was 7% over a peg at the time. It only occurred to me after it was done that when EMP is at peg perfectly, we'll have less ETH we entered when it was more expensive. When the peg is at 1.07, SPI is breaking even on it's ETH investment if that makes sense.
Rewards for this farm are payout in ESHARES which is an EMP token that's used on another part of the site. I have been collecting the ESHARE rewards for the first few days and then sold them yesterday for BUSD and did the same today for BUSD. Here is what we have earned so far, in 5 days from converting that 10 ETH.
You can see that our EMP/ETH LP would be down 0.22 ETH if we cashed it out today. Today's peg price is 1.04 (4% over) so we are losing. To replace this ETH would cost around $640 which is half of what we have converted to BUSD.
That works out to 4.4% for 5 days. I understand that looks crazy but the price of ESHARE has increased from $1600 to $2400 so that factors alot as well to our $1200 profit.
Going forward, I'll not be converting all harvests into BUSD. Im doing it now because it's the best way to see how profitable something is. Reinvesting or converting into other crypto makes it harder to track. I'd like to collect $2000 BUSD to convert into HBD for earn 20%. This will happen in the next 4-5 days and then after that, I'll be aiming to get to a balance of 1 full ESHARE to stake on another part of the website to earn us more EMP. After that, I'll reinvest into the EMP/ETH farm to bring it so when EMP is on a peg, our LP token is worth 10 ETH. And then after that, I'll probably reinvest some and cash out some for building either HIVE/BTC/ETH holdings and maybe a small slice like 10% towards weekly dividends. That would still work out to around 150 HIVE per week. After I fix the LP token price to peg, im, not 100% sure what to do, I have a few ideas but I'll figure it out when that time comes.
I'd guess it'll take 4-5 days to get to 2000 BUSD, maybe 10-15 days to collect up 1 full ESHARE, a few days to fix the LP peg price so thats around 4 week away. I'll continue to watch and see how things work and beable to make a better plan later.
Now, you might be reading this and thinking to yourself, SSUK has lost his shit and basically aped us into a Ponzi scheme. I can understand how it could look like that but please do some research into emp.money and the team. I believe these are good guys where ethics come before profits, not saying profits are not important but acting correctly, being transparent and not bullshitting are good traits to have. As long as they can keep the EMP at around peg, I think the project has legs and whatever we cash out will cover any loss of ETH that might occur if the EMP peg drops. I believe the reward is greater than the risk in the short to medium term so im comfortable with our ETH sitting in this EMP/ETH LP.
Please note that EMP is a high-risk investment and it's not a standard farm. It's been set up so that you can reinvest your harvests into different parts of the website and you end up going full cycle back into the EMP/ETH LP. You could say it's gamified as you have many options to pick from. But make no bones about it, if you are new to farming do lots of research, lots and lots of research and only ever commit an amount you can lose and not care about losing. Do not think for 1-second because I've invested in it, it means it's a good investment. It could all poof 🤧 tomorrow.
That's the update, there will be another in around 4 weeks. If everything remains as is with EMP and ETH stays at around the same price, should have the foundations laid and we be able to better plan how to go after.
Have a great day folks.
