Binance Smart Chain: "Red Light District" DeFi platforms - Don't try this at home

in LeoFinance4 months ago (edited)

goosefinancehomepage.JPG

Introduction

The latest roundtable episode about DeFi on BSC was absolutely great for 2 reasons.
First because of the guest star dalz, the man could transmit so much happiness and inspiration during this episode ! Ok his gains on Autofarm might have helped a bit in this matter but thank you for that anyway ;)
Then because I love to play and experiment on BSC DeFi - I wrote an article more than a month ago about Venus platform.
BSC is literally welcoming every light wallet people, as soon as you are open minded and have a high level of risk tolerance :)

DeFi is not only reserved to whales anymore, bye bye DeFi on ETH !
Just to illustrate a bit what I'm talking about, I've started DeFi on ETH in October, fees were already a bit burning for small investors like me but hype was high and I really wanted to try this hands-on.
If I remember correctly it was like 3 USD to unlock a coin/LP/farm and around 30 USD to pool/farm.
Fast forward to February 8th 2021, I'm trying to exit a farm on 1INCH because they migrated it to a version 2 and obviously they didn't embark the funds to the v2 farm.
That's for the user to exit the v1 farm and enter v2 farm paying 2 rounds of fees, cheers ! Below is the price quoted for exiting only and gas price was not even too high !
ethfees.JPG

Today I'm not going to talk again about Autofarm, Pancakeswap or Venus, it has been discussed in the last roundtable already.
Although I'm using these 3, but these are the good kids of BSC. If we are talking a bit about risk, I would be surprised to hear that a rug pull has been performed within those 3 frankly.
No no no today we are talking about the bad boys, the bars most of us look at but never dare too enter when we cross the Red Light District.
Too dodgy, too naughty, very appealing from the outside but you know as soon as you enter they'll find a way directly through your wallet in the best case and it could go even worse.

I'll try to make it as educational as possible, all this DeFi stuff can be daunting at first, but it's actually quite the same pattern you repeat from one to another.
And I will also try be transparent on the figures involved during my experimentations, fees and profit/loss.

Let's start the BSC "Red Light District" DeFi tour !

Goose Finance (https://www.goosedefi.com/)

Alright to be totally honest, first thing I told myself when I pooled there was: "I am the damn goose".
goosefinancehomepage.JPG
I know we are starting quite strong, but keep in mind that Goose is the one I trust the most in today's list, don't turn off your computer yet :D
The website is a perfect clone of Pancakeswap, you have the 3 main tabs to perform all your actions:

  • Trade to buy their own token by swapping and then pool it
  • Farms where you stake your LPs, those will generate more of the native token
  • Nests which is same as Farms but for single token pooling, and also generate some native tokens

First thing first, let's buy some Goose Finance native token, the EGG ! I know, very trustworthy.
You click on Trade -> Exchange in the menu on the left side.
goosemenu.png
And you'll reach another pancakeswap clone for liquidity exchange and pooling. Actually when I started using Goose there was no integrated exchange and pooling but a pure redirection to Pancakeswap.
Apparently they added this native option recently.
gooseexchange.JPG

Once you click on swap then you will exchange some BNB for some EGG.
There is actually a first step that you need to do once only for each token, then you will be able to swap for as many times as you wish.
This is a transaction to unlock any token, and it cost around 0.13 USD for each coin.
In my case I had to unlock EGG but not BNB as I did that long time ago already.
After unlocking you'll be able to swap and it will cost you anything between 0.30 and 0.60 USD depending on the slippage tolerance you set (0.1% works most of the time).

Ok we got some EGG time to become a liquidity provider. Let's have a look at the LPs available on Goose.
I didn't decide to pool with a single token but you can pool EGG, BUSD, WBNB, USDT, DAI, BTCB, ETH, DOT and some more with an APR between 280% and 750%.
All the stable coins can be pooled with around 400% APR ! And I'm saying APR here, not APY as it would be shocking.
goosefinancenests.JPG

Pairs LPs propose two EGG-XXX pools without any entry fee, EGG-BUSD and EGG-BNB. With a 4% entry fee you will be able to pool BNB-USD or USDT-BUSD or plenty of others mixing BUSD and BNB with anything like BTCB, DOT, DAI. etc.
Goose is mentioning that deposit fee will be used to buyback EGG and that's something they are doing regularly (twitter announcements with bscscan links) in order to fight against their token depreciation.
goosefinancefarms.JPG

I opted for the BUSD-EGG pair in order to avoid any impermanent loss and also because the APR was up to 3600%.
A choice absoutely not guided by greed as you could notice :)
You can see the APR is now down to 2200%, it took around 10 days or so to decrease to this level.

Before to stake your LPs in this farm, you have to add liquidity to the pool.
Click on Trade -> Liquidity and select BUSD for the first token and EGG for the second.
gooseliquidity.JPG

Unfortunately I don't have EGG in my wallet so I can't show you exactly how it looks.
But same principle as before you'll have to unlock the pool before to add liquidity. Once again unlocking transaction will cost around 0.13 USD. And adding liquidity another 0.6 USD.
We have some BUSD-EGG LPs, time to stake them.
If you check the Farms image above you'll see BUSD-EGG is already active but BNB-EGG farm is not.
That means you have to unlock the farm first (same principle as token and LP unlock), for the same cost 0.13 USD.
Then you'll see the following options:
goosestake.png

Last step and we are done ! Click on the "+" to stake your LPs, another transaction costing around 0.7 USD.
In terms of cost to be up and rolling, if we add all those little fees we reach something around 2 USD.
Pretty low and if you ask me it should never be more than that for any DeFi on any blockchain :D
And remember that all the unlocking doesn't have to be repeated if you decide to add to this farm. Basically adding to the farm will cost around 1.5 USD from now on.

Ok time for profit & loss review.
I've entered this pool in 2 times, timidely first with 250 USD. Good way to experiment and feed my curiosity. EGG price was at 25 USD/token.
After 2 days, EGG price was at 50 USD and I collected for 200 USD worth of EGG that I immediately reinvested adding another 200 BUSD from my pocket.
Another 2 days later EGG price was at 100 USD and I said to myself let's push the experimentation further. Adding 2000 USD in the LP (half EGG/half BUSD).
Gains were very handsome, this little thing was printing around 400 USD per day and price was still going up.
Twice a day I would collect the EGG and swap it to BNB, save it and put it to my retirement plan... wait no scratch that I was swapping it against BNB and AUTO to add in my autofarm pool :D
Yesterday I removed a bit less than half of the LP when the price was going down (sold around 125 USD). It was worth around 2000 USD and I decided to experiment on another DeFi I had some views on.

Panda Yield (https://pandayield.com/)

pandahome.JPG
Another Pancakeswap clone, with a very cute panda playing with some bamboo, couldn't harm anyone right ? :)
Here the native token is BBOO (Bamboo) and the price was around 18 USD when I bought - down to 14 after BNB freefall last night and back up to 16 now.
I won't go into details again as the steps to follow are exactly the same !

  • Unlock BBOO and swap it
  • Unlock LP of choice and provide liquidity
  • Unlock farm and stake
    If we have a look at the farms, APRs still look quite good.
    pandafarms.JPG

I opted for the "safe" option again with BUSD-BBOO, and reinvested 1000 USD (500 BUSD/500 BBOO) of the goose money.
Profits are very disappointing to be honest, in 24 hours I collected almost 2 BBOO, around 30 USD (around 3%/day, a bit less actually).
But I still expect BBOO to surge and I would be very happy to remove most of my LP if price reach 100 USD :D

Kimochi finance (https://kimochi.finance/)

kimochihome.JPG
Last stop for tonight, you know the very last bar opened when everything is closed ?
Dodgy to the max, the website is slow AF, you know a rug pull is coming, you just hope you will be able to make enough money to cover your investment before that happens.
Plus if you did attend some learning Japanese language classes online you surely recognized the reference :)
No Pancakeswap clone this time but I kind of have preferred it was haha.
kimochifarms.JPG
But still you have access to farms and that's all you can access anyway ! Saing tab it bugged and the rest is coming soon...
Interesting NFT tab, very looking forward to it, or not.

Ok I'm not talking very nicely about my best earner, yes you heard this right, this is a magic printer.
I entered this one 12 hours ago with 30 USD opting again for the BUSD-KIMOCHI LP.
After 1 hour only I couldn't believe what was in front of my eyes so I decided to add 500 USD.
So after 12 hours I can collect 69 KIMOCHI coins (can't make this up right ?), for a grand total of 225 USD... shocking.
kimochicollect.JPG

Tomorrow night if I'm lucky I would have covered my initial investment.
Kimochi deska ? :D

Wait wait wait, don't go so fast young man, you can't collect all your KIMOCHI right away !
It would have been too good right ? haha
I was able to remove 25 over the 69 tokens available only, the rest is locked.
I've read some stuff about timelock in place to avoid fraud but I don't know for now.
Give me a day or 2 and I will update you on how/if I could collect those tokens ;)

Conclusion

I tried my best to share my experimentations on BSC DeFi, I will share more because I'm still trying some new ones.
This is absolutely not financial advice but entertainment only, do your own research and don't invest money you can't afford to lose.
Feel free to share your comments and ask any question you have in mind, I will try to help you.

Posted Using LeoFinance Beta

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Some amazing result you had! I'm still afraid of going this DeFi pools, as I still don't completely understand them.

Posted Using LeoFinance Beta

Touching wood, no hack or rug pull so far.
Honestly those are scary, but some others are much more trustworthy. I think the best way to learn is to experiment hands-on. And BSC allow us to do so with very small capital invested as fees are extremely low :)

Posted Using LeoFinance Beta

Opening so many accounts seem like a pain. Especially since there are so many exchanges now that use KYC. Good luck on your quest for Defi platforms and I doubt I will try it.

Posted Using LeoFinance Beta

Sorry I didn’t mention that in the article.
But all the DeFi scene doesn’t require to open any account or provide any KYC.
All you have to use is your soft wallet, like MetaMask for example.

Posted Using LeoFinance Beta

Great. It means your identity is still unknown to them. At least you won't see any spam if the they turn out to be a scam.

Posted Using LeoFinance Beta

i bookmarked this one!

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That miner fee! lol dang

I still haven't touch DeFi honestly. It reminds me to much of the wild west of 2017 where it was scams and shitcoins launching every day.

Posted Using LeoFinance Beta

Wild west is the exact term I'm using when I discuss DeFi with friends/family haha.
You can find gold as much as you can get shot every single day :)

Posted Using LeoFinance Beta

I went into Kimochi when it was still $1 and made back my investments in less than 24 hours. The rest is locked and I'm still farming. Erotic NFT's sound good! And the locked liquidity means they won't rug, right? :D

Posted Using LeoFinance Beta

Yes I thing it should prevent rug pull you're correct.
So it will be locked for 11 days minimum right ?
If you have more info about it I would be happy to listen ;)
I see your BSC updates on noise, I should jump in sometimes !

Posted Using LeoFinance Beta

so what does kimochi mean anyway? since you mentioned taking Japanese classes

Posted Using LeoFinance Beta

Kimochi can be translated as good feeling :)

Posted Using LeoFinance Beta

bummer, I was expecting something more spicy :P

It's all about context :D

Posted Using LeoFinance Beta

ohhh I see ( ͡° ͜ʖ ͡°)

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