An introduction to Auto-Compounders
Housekeeping:
As staking is upon us, we wanted to share a few things about using auto-compounders to do the hard work.
As it currently stands, in order to maximize your T2K gains, there is manual work that will need to be done on an ongoing basis. This particularly means claiming rewards, suicide compounding (or adding additional BUSD), and restaking.
There are solutions out there to make people’s lives easier, and we wanted to introduce one of those solutions today.
Keep in mind, in the coming few days we will need the community’s help to like and comment on our forum post (once it’s available) to get us listed as quickly as possible and give our investors the best and most rewarding returns.
I do need to make everyone aware that unfortunately staking will not be available for another 24 hours.
In short react.js, a programming language we redesigned in, is giving us a few issues. We would rather not give you a buggy interface. We would rather continue to test and make sure everything is silky, silky smooth.
Hang tight, staking and the sniper bot. Both out within 24 hours.
Staking and the APYs:
General T2K Staking:
Terms:
APY Assumes compounding at the end of each respective term
APY = (1 + (APR / compounds))^compounds — 1
7 days
ROI: .4%
APR: 20.8%
APY: 23.1%
30 days
ROI: 3%
APR: 36%
APY: 42.3%
90 days
ROI: 15%
APR: 60%
APY: 75%
180 days
ROI: 35%
APR: 70%
APY: 82.23%
360 days
ROI: 100%
APR: 100%
APY: 100%
These numbers have been extensively worked on and reviewed to make sure they are fully sustainable. We want to ensure that without a single buyback (which there will be many) we’re good for 2+ years of rewards for holders.
Generally unlocked staking will have a much lower APY but will still allow users to earn T2K rewards.
LP Staking:
LP staking will have a variable APY that depends on how much you’re staking. The more LP you stake, the larger your T2K rewards will be on a daily basis.
It’s a lot of math but here’s a quick graphic on how it works out.
Honestly, I don’t personally understand it. But I know it’s worth LP staking vs general T2K staking over the long term. Especially if you’re using an auto-compounder.
Below is a quick example calculation of T2K-BUSD LP staking APY/APR:
Assume:
- There are a total of 1000 LP tokens
- The LP holds 5,000,000 T2K and 300,000 BUSD
- 1 T2K = $0.06
500 LP Tokens Staked
Value Staked = (500/1000) * (300,000*2) = $300,000
Value Rewards Per Day: (.06 * 57,600) = $3,456
APR = (3,456 * 365) / 300,000 = 4.2048 ⇒ 420.4%
APY (compounded daily) = (1 + (4.2048 / 365))³⁶⁵ — 1 = 64.415 = 6441.5%
T2K Now what?
Now that you have your tokens, you are free to do quite a few things. One is to LP the token. What this means is going to Pancake Swap, clicking on liquidity, and providing additional BUSD to pair with your T2K. This will then send LP tokens to your wallet for you to start earning trading fees.
Here’s an article straight from Pancake swap which will walk you through this process:
https://docs.pancakeswap.finance
For our purposes, you will need to use the following pair:
T2K (0xf454a5C7BeEF5192426e1312B27763aD1671FB27) and BUSD
If you are deciding to suicide compound (sell half of your T2K tokens to BUSD and then provide liquidity) then you can do so using the zap right on the website.
What is Beefy Finance?
Beefy Finance is a Decentralized Finance (DeFi) Yield Optimizer project that allows its users to make more crypto with crypto. DeFi applications are unique in the sense that they are permissionless and trustless, meaning that anyone with a supported wallet can interact with them without the need for a trusted middleman.
Beefy Finance caters to its users by making it easy to get a yield on their crypto capital in a safe and decentralized manner. Through a set of smart contracts and several investment strategies, Beefy Finance automatically maximizes the user rewards from various liquidity pools (LPs), automated market making (AMM) projects, and other yield farming opportunities in the DeFi ecosystem.
This provides a huge advantage over attempting to do this manually yourself. Beef up those yields!
The project consists of an anonymous team, directly inspired by the yield optimization projects that had been developed on the Ethereum network. As a team that has been part of the crypto world for many years, we are strong proponents of “Don’t Trust, Verify”.
Beefy Finance offers complex strategies that are simple and intuitive for any investor to take part in through the vault offerings on the platform. The first set of vaults went live on October 8, 2020 on the Binance Smart Chain (BSC), making Beefy Finance the first Yield Optimizer on BSC. With the inherent advantage of speed and low fees with Binance Smart Chain, the team is exploring new methods of optimizing automation to secure the largest yields available. Upon initial deployment on the Binance Smart Chain, Beefy Finance later expanded to many more blockchains (currently 10+ and counting).
What makes Beefy Finance unique?
There are a few key reasons why Beefy Finance differs from a large number of Yield Optimizers out there today.
- Beefy Finance largely distributes platform revenue back to those who stake $BIFI. With $BIFI, you essentially hold a dividend-eligible ‘company’ share.
- Beefy Finance has more than 10 smart contract developers who carefully test and review our vaults, investment strategies, new platforms and smart contracts before releasing them to the public. Beefy is also actively encouraging developers to participate and engage to make Beefy Finance an even better product.
- Beefy Finance is flexible and operates on more than one blockchain.
- Given enough eyeballs, all bugs are shallow. The more widely available the source code is for public testing, scrutiny, and experimentation, the more rapidly all forms of bugs will be discovered. This is a key Beefy principle.
- Beefy offers unique strategies that other yield optimizers simply do not have. This includes liquidity pool pairs that you can find only on the Beefy platform.
- The mooVaults for yield optimization boast large APYs that outperform many of our yield farming competitors.
- Beefy Finance is a supported partner of Trust Wallet, Binance’s official decentralized wallet. This provides the project with credibility and improves overall trust.
The yield farming steps that Beefy Finance executes for you:
At Beefy ‘you earn what you stake’, regardless if this is a liquidity pool (LP) token or a single asset. In this example, staking CAKE-BNB LP will result in more CAKE-BNB LP over time. This effectively grows your share in the liquidity pool and thus allows for more and more rewards over time. All of this with Beefy doing the required work, while you can sit back and relax!
TLDR;
Staking out in 24 hours, and shortly after the sniper bot will also be available.
We know things take time and we appreciate your patience as we hit every deadline we have announced over the past 3 weeks.
We’re sorry we missed this one by less than 24 hours but know we’re all working our asses off to make these changes happen for you in an easy-to-use way.
