BSC Spaceship
Investing Approach
BSC Spaceship strategy is very similar to DAO Citadel strategy as well on Ethereum mainnet, but built on BSC network to take advantage of the lower gas fees. With lower fees guaranteed on BSC, the users can enjoy higher yield farmed and compounded more frequently.
This strategy was specifically designed for investing in projects that have the lowest market cap to TVL ratio, so called ‘undervalued’. It can be highly risky to invest in these projects, but also potentially very rewarding. According to the designed allocations, these undervalued tokens are paired up with BNB and BUSD on BSC to create liquidity and farmed on PancakeSwap.
With this, the overall strategy not only benefits from the appreciation of the price of the tokens but also benefits from the additional rewards the liquidity pools offer. For compounding, the rewards for farming CAKE generated by the liquidity pools are then automatically sold at regular intervals and are then reinvested back into the LP.
Allocations
12.5% ALPACA (Alpaca Finance)
12.5% XVS (Venus Protocol)
12.5% BELT (Belt Finance)
12.5% CHESS (Chess Finance)
25% BNB
12.5% BUSD
12.5% USDC
The actual pairs provided in this strategy look like this:
25% BUSD-ALPACA
25% BNB-XVS
25% BNB-BELT
25% BUSD-CHESS
Portfolio Growth
Incentives earned from yield farming these pairs would automatically be compounded by our smart contracts. The portfolio will be rebalanced to reset the strategy back to its standard allocations and weights laid out above so that you will always maintain a balanced allocation!
Risks
A standard risk when it comes to providing liquidity on decentralized exchanges is impermanent loss. If you want to know more about the impermanent loss, please check this article, made by Binance Academy.
Fees
Besides the standard 0.5%-1% deposit fees and 20% profit sharing fees (see here for more details), there is a 10% fee on the yield farmed which is used to pay the gas fees associated with harvesting rewards and depositing LPs.
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