One of my newsletter subscribers reached out to me yesterday and informed me of an opportunity. I spent a good chunk of my evening researching the project and subsequently investing a bit of money. The investment is a yield farm (liquidity pool).
I don’t actually like yield farming that much as I find them to be quite risky. I’ve written about and broken down the inner workings of yield farms in a recent article.
I recommend giving that a read if you haven’t already. That article explains the criteria in which I feel comfortable putting my money into a yield farm. In short, there are two criteria wherein I’m happy to invest in a yield farm.
I don’t care about impermanent loss, as I am happy to withdraw more or less of either token when I exit the yield farm.
The yield farm is between 2 stablecoins (ex. USDT/USDC) and therefore there is no impermanent loss.
What caught my eye about this yield farm that I invested in last night, was that the pool was between CRO and a cryptocurrency called DARK. Let’s break it all down.
But first …
Newsletter Referral Program
Are you enjoying my letters? Do you want to share it with other people? Well now I’m creating an incentive for you to do so.
There is a new site called SubLoops.com that allows me to offer you (my readers) rewards for referring people to my letter. If people use your link to sign up for my letter, then you get credit for that sign up.
If you refer 10 people, I’ll give you a little gift. 50 people, a bigger gift. 100 people, a substantial gift. I haven’t exactly figured out what the gift will be yet … but I’m pretty sure it’ll involve bitcoin. Head on over to SubLoops and give it a shot.
Stablecoins Aren’t Just for USD
If you’re familiar with stablecoins, then you might think that they’re exclusively for pegging a cryptocurrency to the USD. This is not true. In fact, you may have used other stablecoins and not even known it.
WBTC is one such stablecoin. This is a cryptocurrency that is pegged to the value of BTC. So if there was ever a cryptocurrency pool between BTC and WBTC, that is something I’d be interested in, as I would be earning rewards on a liquidity pool, without the risk of impermanent loss.
The DARK Token
DARK is a stablecoin for CRO.
If you’ve been keeping up with my portfolio updates, then you know that I hold about 5-10% of my portfolio in CRO. I like the coin, the company, and the ecosystem. It is a long term investment for me.
Furthermore, CRO is an excellent tool for generating passive income. I do three things with the passive income from my CRO.
60% of it is used to compound the growth of my CRO holdings
30% of it is converted into BTC to passively grow my BTC holdings
10% of it is converted into USDT as a hedging strategy
Now, this is where DARK has come to intrigue me. There are very high yields for CRO/DARK liquidity pools.
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