The Rise
I have written quite a bit about different Liquidity Pool Tokens. It started with Uniswap at the ETH chain, then PancakeSwap on the BSC chain, then came Cub on BSC, and followed by various others. They all have some similarities and differences. They all provide passive income based on some amount of money an investor is willing to put in the project. That is where the similarity ends. In terms of execution, all projects are different in their own ways. The reason I am thinking a lot about them recently is simply because I am looking for a complete income replacement. For those who don't know what that is, it is a common idea being touted in the mutual fund and retirement income industry. The thought is, and again, this is just a suggestion, as a rule of thumb, individuals should plan for an income replacement rate of 75% of their gross preretirement income in order to maintain their current lifestyle in retirement. The 75% is no magic number. I have heard people make do comfortably at 50% replacement, and I also know people who are targeting 100% income replacement. There is no right answer, pick your poison.
I am trying a number of different assets to seek a good combination. Crypto Liquidity Pools are something I am looking into with a lot of interest.
Some of these things are so new, there is no long-term price or performance history of these financial tools. The three I am actively following at the moment all started in Feb or March of this year! Yeah, so not even a six months of history. The oldest thing on BSC chain that we have is PancakeSwap (started Sep 23, 2020), even that is only 7 month old. The reason I don't track it with the table below, because it doesn't have a BUSD pool, and BNB pools are hard to compare because of the extreme volatility of BNB. Anyways, Apr 24 was the Bitfresh IAO at ApeSwap. Something strange happened to Banana token after that. Normally all these tokens (LP tokens) like Banana, Egg, Cub etc, rally big at the launch, and then it slowly decline and finds a stable price where they trade mostly sideways. This is because most people are selling their earnings. Until a time comes, where there is interest to hold the token for some reason (and new investors emerge). Then 'if' there is something new to the project, then it explodes to the upside, with massive increase of TVL. Banana just had that on the 26th of April. After trading between 70 cents to $1, it exploded to the upside, and currently trading at $6. I think, this could be the begining of a growth phase for Banana.
One Good Trade (not me)
When volatility increases, so does various trading opportunities. On the 28th Banana hit a nearterm top of about $8. Then for a while it couldn't break. The TVL also couldn't break past $330M. After a second lower high around 7.6, the pattern broke spectacularly to the downside on massive volume. I didn't trade this. I am only investing in these tokens. But someone I know sold at $7.8 and $7.6, just before the collapse! Kudos! A job well done! One good trade!
Price & Yield Comparison
| Project | CUB | BANANA | EGG |
|---|---|---|---|
| Current Price | 2.733 | 5.976 | 15.03 |
| Token/$1000/day | 3.02 | 2.28 | 0.58 |
| $Return/$1000/day | 8.25 | 13.62 | 8.71 |
| $TVL | 18.79 M | 316.77 M | 113.06 M |
| Project Start Date | Mar 09, 2021 | Feb 21, 2021 | Feb 11, 2021 |
Current prices and yield at the time of writing (updated at 05:50 PM CST, 04/30/2021) Data
| Project | CUB | BANANA | EGG |
|---|---|---|---|
| Current Price | 3.06 | 1.615 | 14.287 |
| Token/$1000/day | 2.76 | 6.95 | 0.59 |
| $Return/$1000/day | 8.44 | 11.22 | 8.42 |
| $TVL | 18.46 M | 88.79 M | 113.93 M |
| Project Start Date | Mar 09, 2021 | Feb 21, 2021 | Feb 11, 2021 |
Current prices and yield at the time of writing (updated at 03:40 PM CST, 04/26/2021)
Notice the difference between the two tables, how Banana is pulling ahead!
Disclaimer: This is NOT professional advice, this is all just my own opinion and experience. I am NOT a Certified Financial Adviser. Consult professionals for any financial, accounting or legal related questions you have.
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