1083% APR on stable coin staking 🕺🥳
JUST LAUNCHED — Is it possible to make 1083.3% APR on staking USDT?? Not till now, but Platypus seems to have come up with a great option for you. Can we do this with risking only 15%?
Introduction
So, I am loving this DeFi space, but have done enough now to know that you got to be careful on the APY’s. The initial high APR’s do drop pretty quickly as the TVL increases or the token’s prices drop.
In general I find, that you can expect to be in the red initially, but do give it time as the APR’s do kick in and in general I have been in profit within 6 weeks.
Be sure to read till the end to see the risks before you jump in
The project has some great investors and 2 audits, so here’s hoping the team is a good one. Although, I am concerned that:
- I have battled to find much info on the team themselves. The CEO is Mr Duckbill, thats a concern.
- Their roadmap is a very lite, but perhaps thats to keep things simple and to focus.
What are you saving for?
Ok, lets assume that I have $750 right now, but at the end of 2022, i need to pay $6000 in school fees. Can Platypus help me do that?
I believe so and here is why… (beware though, this is risky)
Our strategy
Ok, so lets start by staking our USDT. Now, we will have a split of:
- $500 USDT staking — 70%
- $200 PTP staking for 10 months — 30%
You can see by using their calculator that today, while PTP is $8 as of today that we can get a 1083.3% APR.
Step 1: $600 USDT deposited
So, step 1 is to get your USDT staked and make sure you
- Deposit your USDT, approve on metamask
- Stake your USDT
You will now start earning the base APR. Note that the APR is low at the moment as TVL is growing quickly, but PTP is dropping. Its should stabilise in the next month and lets see if it settles at around 20%.
Step 2: $200 PTP staked for 10 months
Now, you can purchase your PTP on trader joe as below.
Your final step is to stake in platypus. You will now start receiving vePTP and its these that are used to boost your yield.
NB. its not the PTP that boosts your yield, its the vePTP.
Step 3: Receive vePTP
As you receive your vePTP, you will automatically boost up to higher yields. Use the calculator to get an indication as to how long this will take.
On a daily or weekly basis, you will need to claim your vePTP to boost your rewards.
Every week, you can also claim your PTP rewards and stake those for the compounding effect.
ps. If the yield does drop below what your are expecting, you can always top up with some more PTP as you go.
Risks
So the following are the risks seen so far in the first few days.
- If the price drops significantly, the yields also drop’s
- As with most DeFi, as the TVL increases, the yields drop
- There is always a threat of a hack, so don’t put all your eggs in one basket.
- I am finding it difficult to see that the team is known which is always a concern.
These are the major risks as I see it. You are risking your APR percentage as well as the price drop that may occur in PTP.
So, if you have put 30% into PTP and the price halves, then you are risking 15% of the investment. (assuming a hack doesnt occur or the project doesnt collapse)
Conclusion
I have put in less than 2% of my portfolio and I will update this article in February to let you know how my school fees are going 😀