Playing Algo-Stable Genesis Pools with Eagle Finance

One of my degen friends just launched Eagle Finance, which is a fork of tomb.finance on the Fantom network.

I like using projects that have developers that I know because it dramatically reduces risk of rugpulls. Risk is never zero though!

Tomb itself is a fork of what was originally basis dollar, an algo-stable coin project that I managed to lose money on back in the day. From that loss I have avoided algo-coins like the plague because they are straight ponzis.

But that doesn't mean you can't make money with them.

Tomb forks are all the rage at the moment, so I thought I would take this opportunity to let you know how I played this one.

Genesis Pools

The first thing to understand about tomb forks is the genesis pool concept. Think of this as pre-farming. It's a way to distribute the main token to degens since there is no supply to start off.

So your friendly degens put up capital and earn tokens (EAGLE in this case) that will then be used to create LPs once the project is fully launched.

For me, I put up $10,500 of deposits in 2 genesis pools: wFTM and TSHARES.

For the wFTM, I deposited 5500 USDC in geist.finance (aave clone on Fantom) and borrowed 2094 FTM, which I then wrapped and deposited.

For the TSHARES, I just swapped 5000 fUSDT for TSHARES and deposited. Note, this was a degen move on my part. TSHARES is the governance coin from tomb.finance and is extremely volatile. But since it's so risky the genesis pool paid the best.

So I put up this capital, paid 0.75% deposit fees, and waited for my EAGLE.

LP Rewards

Eagle Finance ran genesis for 4 days and launched LP rewards after 2 days. So starting at 2 days, I started harvesting EAGLE, selling half for FTM, added liquidity, and staked my LP tokens in the farm to start earning ESHARE (the governance token).

Now I'm selling ESHARE every time I claim for fUSDT and just riding the wave.

The Goal

The goal here is for EAGLE to catch a wave of buying. As a low-supply coin it's going to be very volatile. Hopefully I will see a pump and be able to remove my LP position on a high. Until then, I will just cash flow the ESHARE rewards.

Returns So Far

Now that genesis is over, I can calculate my actual costs.

I borrowed 2094 FTM and repaid 2101 FTM. Fortunately, FTM dropped over those couple days by about 10%, so I actually came out ahead on this short.

When I sold my TSHARES back to fUSDT I ended up with 4541 fUSDT.

So my net cost after all repayments and swaps ended up being $470.

On that $470 net cost, I have already gained 566 fUSDT from selling ESHARE and have $1154 worth of LP tokens in the farm.

Total gain at the moment is 266%, but the LP position fluctuates signficantly block by block.

More importantly, my position is cash flow positive since the 586 fUSDT is greater than the $470 net cost. So even if the LP goes to zero I'm still profitable.

DYOR

These are super high risk plays. DYOR. Get in early and be nimble.

Posted Using LeoFinance ^Beta