Swamp!
Here we go again! Now we are going to farm Banana in the Swamp! I kid you not! No matter how ridiculous this sound, I promise you it is true. In additional to that, Swamp has a bit of a twist, which none of the other farms that I described recently has.
Swampy (SWAMP) is a governance token native to the Swamp.finance ecosystem. Swamp.finance is a yield optimizer hosted on Binance Smart Chain (BSC). Swampy token’s utility is for participation in voting on SwampDAO proposals. As an incentive to deposit their assets in Swamp.finance vaults users are getting a bonus yield in Swampy.
Swamp.finance is a yield optimizer, which enables yield aggregation for holders and users of SWAMP token. To facilitate automation of the yield farming and the process of compounding, Swamp.finance uses vaults. Vaults also enable a more efficient utilization of gas, as well as other automated processes, and use different yield strategies to help users grow their assets through automation. Swamp.finance has an optimal compounding strategy with an efficient pricing model, designed to encourage long-term yield farming and provide appropriate incentives for long-term holders.
In simple terms, this is a option, if you hold other selected LP token. You can put them in the Swamp, and get return in 2 ways.
- You will get Swamp token (currently printing $200 almost!)
- You will also get your staked LP token that you have put in the vault. So the number of LP token you held, will increase.
This tool also auto-claims at an optimized interval and you do not have to do anything. If you are like me, and if you have money in various pool, going to each pool and claiming daily gets old rather quickly. They are all mostly the same anyways. Swamp Finance allows you to automate that and gives you a better return in the process.
Example from ApeSwap
Recently, I put in some money at the Banana Farm of ApeSwap. Its Banana-BUSD pool currently pays 13.18 Banana tokens/$1000/day. That equates to about 1.07%/day. The same Banana-BUSD LP token, if I put in at the vault at Swamp Finance, I get 1.82%/day. If you say 0.75%/day difference is small, think again. It compounds to 8896%/yr, compared to 4706%/yr, if I just kept in at ApeSwap. So the long term compounding effects are phenomenal, so is the 'set-it and forget-it' feature. Because, if you choose not to, you don't have to log-in to Swamp Finance everyday. You don't have to harvest your tokens.
Chart
Price is through the roof for Swamp. $116M is substantial TVL, so there is little fear of a 'rug-pull'. Price is very volatile though, but for a new project it stands a bit apart with a innovative product, so personally speaking I do not have any problem dealing with the price volatility.
https://goswapp-bsc.web.app/0xc5A49b4CBe004b6FD55B30Ba1dE6AC360FF9765d
The above chart tool is quite good, the usual tradingview affair, I am just fine with that personally.
Comparing Yield between for TOKEN/BUSD Farms
I decided, I will keep track of the tokens I am following using this simple table. I have updated the prices and I have added the project start date to understand the maturity of the farm. Currently Comos is struggling to gain capital from the investors, but at the same time, that is also a high-risk opportunity. I have added to my Comos position at 0.80 cents. I understand that it is highly speculative, but I am willing to take the risk. This is money I can loose.
| Project | CUB | COMOS | BANANA | EGG |
|---|---|---|---|---|
| Current Price | 3.20 | 0.61 | 0.84 | 26.92 |
| Token/$1000/day | 3.53 | 42.01 | 12.85 | 0.41 |
| $Return/$1000/day | 11.29 | 25.62 | 10.79 | 11.03 |
| $TVL | 16.4 M | 1.5 M | 41.2 M | 134 M |
| Project Start Date | Mar 09, 2021 | Mar 28, 2021 | Feb 21, 2021 | Feb 11, 2021 |
Current prices and yield at the time of writing (updated at 09:00 AM CST)
Source: Project Data from Binance Yield Farms Listing
I currently have nearly 10% of the COMOS-BUSD pool, which is giving me excellent return if the project survives. I estimately, I can get my money back in about 30 days time, which is a risk-reward ratio I am willing to take.
