disclaimer: This is not a financial advice; and moreover not a guaranteed successful strategy. More like my trial-and-test method to compound faster, fingers crossed! 🤞
Oops....
Seems that another CEX that promotes CeFi is once again clamped down by regulators and interestingly, this site has pretty much cut out quite a bit of its business opportunities!
Even the prominent Singapore is dragged into the list of prohibited countries, how interesting!
Hence the more reason to get out of CEX (Centralised Exchanges) and got to learn DeFi (Decentralised Finance) thoroughly.
I DIGRESS!
This post is not really about rambling about CEX clamp downs; but more about the continuation of a chapter of my financial journey now that my hurdle of getting the down-payment for my car is done, and my car is already at hand.
That was just the end of the the beginning of "happy ever after" car purchase series. Now I must find ways to keep my car for the next 9 years.
So how will my plan be??
Throughout the whole year of looking into research and trying out multiple DeFi protocols during bulls and bears, I have decided to settle my best LP experience is actually on DefiKingdoms , where it is Defi + future Gamefi with the NFT they provided there.
However, instead of using its first protocol, which was launched under harmony one blockchain- called Serendale, I have found out it is a lot easier to farm in its newly expanded Avalanche subnet chain - Crystalvale, where I can move USDC easily to Polygon and bridge over to its own DFK chain subnet chain, especially now that MATIC (Polygon) chain is having wider and wider adoption as entry level layer moving USDC besides the Solana chain.
With the blessings of my previous car Little Pegasus through re-selling, I managed to get 10% of the re-selling price of the car (90% goes to the loan-repayment account that can service the loan for 5 months) and topped up into the Farming pair that I already started testing before, hoping that I can withdraw it every few days where I can move it to my daily compounding CeFi Nexo with an 8% APY until needed to continue servicing my car loan on the 6th month.
Why wouldn't I keep compounding in DeFi?
Even though the compounding isn't much in CeFi stablecoins, however, it is still less high risk than the project itself despite that it is still running strong. The thing about high yield DeFi Farms is anything can happened; despite the lowered value of the farmed token, getting back ROI (Return of Investment) is important, and keeping it in stablecoins is important.
Moreover, Nexo actually allows me to withdraw up to 5 times a month fee-free (depending on what membership position I am in) without too much worries, therefore the stablecoin I choose to keep will be the "safe vault" until I need it would be the best bet in case of any emergency.
Of course, I will definitely set aside 5% of my day job's salary for servicing the car loan still; and this is a layer-2 option should any extra expenses needed like car servicing.
This sounds complicated: How is this plan actually executed?
This is a reminder to myself to make sure I stay in the plan
Though it looks really complicated especially investing into DeFi and harvesting to stablecoins for use later, unfortunately with the limitations of the current network we just have to hustle with whatever I have.
So far I have tried bridging from CEX (Binance.com exchange) to DeFi Kingdoms with the steps 1 - 3 on the left (invest in) method works, and now I must patiently wait until it is ready for harvest to resume step 4 - 7. I have tested depositing USDC directly into Nexo wallet via the Polygon network and it is super fast compared to other legacy coins (like BTC and BCH), so I know that at leas the Polygon network side has no problem at all.
Will I succeed with plan this long term?
Only time will tell.
How about you?
Do you think a relevant risky yield plan from a quite establishing DeFi + expanded upcoming GameFi will make this plan work, as long as no feelings (especially greed) are attached to the token and dollar cost average selling back to the stable coin, compounded on a lower rate will help? Will these small moves cost too much and not a good idea?
Until then
