We’ve all heard about people making money in crypto but many investors still don’t know some of the easy ways it’s possible to do so. One of the best ways to do so is by taking advantage of our PegHub+ Advanced Protocols. However, they’re called Advanced for a reason as there are certain strategies that, if followed, all investors in a protocol can benefit from and “print money forever”.
For the purpose of this article, we’ll use our newest PegHub Advanced Protocol, SnowPegs, to explain the optimal strategies for all investors to continually earn income while also taking out profits while maintaining the overall health of the protocol. This system would work the exact same for any PegHub Advanced Protocol by simply replacing the snowSHARE and snowPEG tokens (snowAVAX, snowLINK, snowSOL) with any other protocol’s share and peg tokens.
First of all, we want to clarify one major differentiator between the way we do things at PegHub and other protocols. You’ll notice that most other seigniorage protocols completely discourage selling of peg tokens, some going so far as calling investors that do selfish or greedy. At PegHub, we want investors to have the freedom to do what works best for them!
Having said that, it is worth remembering that the economics of any seigniorage protocols are in part dependent on the majority of investors acting in the protocol’s overall best interests. That’s why we’ve created this article to help guide investors on optimal strategies to both keep protocols healthy for the long term and keep their investments working for them as long as possible!
Optimal Investment Strategy – Everyone Wins with the 80/20/80/20 Plan
Everyone is free to use our protocols however they want. However, we recommend the 80/20/80/20 strategy, which we have consistently found to be the safest investment strategy both for protecting your assets and the overall health of the protocol.
The safest place to invest in a PegHub+ Advanced Protocol is the peg token LP farms. In our SnowPegs example, that would be:
- snowAVAX-AVAX LP
- snowSOL-SOL LP
- snowLINK-LINK LP
Take 80% of your investment and put that into these farms, split into whichever tokens you like the most, to earn consistent high yields in the form of snowSHARE. The remaining 20% of your investment can go into into the share farm, in this case snowSHARE-AVAX LP. This farm is a lot more volatile and can result in more impermanent loss, but can also offer higher profits! This is why we advise against having more than 20% of your investment in this farm.
But How Do I Take Profits and How Do We Print Forever?
The best way to take profits is by selling the profit token, snowSHARE, as for your profits. However, in order to help the protocol and your investment to “print forever”, we can implement the second part of the 80/20/80/20 plan.
You can take 80% of your total investment and put that into the autovaults to consistently auto compound and grow your investment quickly using the power of compound interest (check out this article to truly understand how quickly this can grow your investment). This portion of your investment is intended for longterm growth.
You can take the other 20% of your total investment and put that into the manual farms and use these rewards to take profit. Every time your rewards reach a certain amount, redeem your profits and buy yourself something nice!
Example $10,000 investment using the 80/20/80/20 strategy above.
We will take 80% of our total investment and put that into farms in the following way:
- $3,000 into the snowAVAX-AVAX farm
- $2,500 into the snowSOL-SOL farm
- $2,500 into the snowLINK-LINK farm
The remaining 20% of our total investment would be put into the share farm:
- $2,000 into the snowSHARE-AVAX farm
Now we take this initial portfolio distribution and split it 80/20 again for our long-term profit-taking plan:
(Grow Your Investment)
Now you can safely take profit from any of your manual farms whenever you want without impacting your long-term investment and keeping the protocol healthy forever!
Optimal Boardroom Strategies
The boardroom can be extremely lucrative, but also can take the most amount of investor experience and manual process. The APR’s you can get in the boardroom tend to be astronomical, but the boardrooms only reward investors when the protocol’s tokens are above peg. This is why we recommend the 80/20/80/20 strategy above – when the protocol is healthy and the boardroom is printing, more people invest in the boardroom which drives the price of snowSHARES up, which means the autovaults are growing your investment quicker and the profits you’re taking from the manual farms are more substantial!
One of the most important considerations for your boardroom rewards is whether or not the reward token you just received is above or below peg. If the token is below peg and you decide to sell it, you are driving the price further away from peg meaning it will take longer and longer before the boardroom prints again for the massive rewards you’ve been receiving. If your reward token is above peg, there’s another 80/20 rule which optimizes your boardroom profits:
In this case, take 80% of your reward token (for example, snowAVAX), and put them into the snowAVAX-AVAX LP (ideally with new AVAX, but if needed you can sell half for snowAVAX to get into the LP). Take the other 20% as profits.
Another Important Strategy to Keep Protocols Healthy: Spread the Word!
One of the best ways to help your investment and the protocol long-term is by simply telling people all about us. Word of mouth has been the most effective marketing tool for over a century and that’s still the case in crypto. Whether it’s telling your friends and family about the incredible opportunities available in DeFi, or simply sharing our socials and joining our weekly YouTube AMA’s/Twitter Spaces. Every like, share, comment, etc. helps spread the word and helps everyone’s investment continue to print forever!
If you have any questions on anything in this guide, or have suggestions for your own optimal investment strategies, we’re always available on Telegram and Discord! Come discuss, chat, or just hang out. We love hearing from our community!