Weekly Staking and Yield Farming Review — 20th January 2022
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Let me start this week’s review with a project that got our attention until we quickly realized it was a scam. It is a lesson for all of us.
The project is called POLAR. Recently listed. In fact we discovered it the day it was listed. It claimed to be a fork of RING. For every 10 POLAR you purchase you will receive 0.5 POLAR every four hours. My calculator doesn’t have enough digits to calculate the exact APR! They claim to have a team of experts who will find the top 30 staking projects thus maximizing earnings and reducing fees.
The reality is, if this was true these staking projects would have to be ultra high risk with pathetically low liquidity to allow POLAR to pay these levels of returns. But if you got in at a low valuation, which POLAR was at the time, and exited quickly then you could theoretically make a tidy profit. And it is that type of thinking that leads to losses, losses that can be easily avoided.
The reason we say that is because with a little more digging you can work out the projects which are likely scams. Remember over 70% of projects listed on Pancakeswap are scams and this is no exaggeration.
The red flags here were:
1. RING is in fact a rug pull itself.
2. POLAR’s team is selling down their tokens in small chunks on an hourly basis.
3. The team is anonymous.
4. The returns are the type you would find in a Chinese Ponzi.
With the number of scams circulating now we think it is time to avoid projects which have anonymous teams unless the project has an operating platform with happy users and is NOT in the DeFi space.
Now onto this week’s review of activity in the staking market.
Pancakeswap saw returns looking more conservative compared to previous weeks. It’s highest APR was 238% from CCAR-BNB. CCAR or CryptoCars is a $12 million NFT project. Not something that looks like the next big thing and best avoided.
Sushi saw the APR on its native token reduce from 12% to 7.84% in the last week. For the level of risk this APR is far too low.
It’s highest yield of 3k% from its farm was from WETH-RARI. Rarible is a popular NFT marketplace. Whilst Rarible has lost market share to OpenSea it is still growing its user base and transaction volume and could be a good bet especially with such an attractive APR.
Talking about high APRs and NFTs, Harvest is offering an APR of 5,376% for the latest NFT marketplace to take on OpenSea, LooksRare (LOOKS). Much of its recent NFT trading volume has been inflated by selling the same NFTs multiple times. That is a sign of a project team only in it for a quick buck
OlympusDAO saw its token price plummet yet again, this time by 47%. However that still doesn’t make it good value in our opinion with its value still 4 times its assets held in its treasury.
AAVE’s top APR of 17k% was from Ampleforth, the digital-asset-protocol for smart commodity-money. If you understand what that means you are a better man than me!
Check out this week’s table of APRs from leading platforms here.
Click below to see previous Weekly Staking and Yield Farming Reviews:
- Staking Review — 13th January 2022
- Staking Review — 6th January 2022
- Staking Review — 9th December 2021
- Staking Review — 25th November 2021
- Staking Review — 21st October 2021
- Staking Review — 14th October 2021
- Staking Review — 7th October 2021
- Staking Review — 30th September 2021
- Staking Review — 23rd September 2021
- Staking Review — 16th September 2021
- Staking Review — 8th September 2021
- Staking Review — 2nd September 2021
- Staking Review — 26th August 2021
- Staking Review — 19th August 2021
- Staking Review — 12th August 2021
- Staking Review — 5th August 2021
- Staking Review — 29th July 2021
- Staking Review — 22nd July 2021
- Staking Review — 15th July 2021
- Staking Review — 8th July 2021
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No Financial Advice
This report does not constitute financial advice or a recommendation to buy in any way. Always do your own research and never invest more than you can afford to lose. Investing in cryptocurrencies is high risk, and you could lose 100% of your investment.