Last night's trip down the Binance Smart Chain Decentralised (ish) Finance rabbit hole convinced me to ditch some of my long held ETH and replace it with mainly BNB, cake and a few other bits too.
I've got around 75% of my ETH staked in liquidity pools, but the other 25% has just been sitting in my Metamask wallet doing nothing for months, because I've been put off using it for anything due to the high GAS fees - I just haven't been able to bring myself to use it for anything.
And then last night I discovered Binance Smart Chain which allows me to stake various coins on platforms like Autofarm and Pancake through basically the same mechanisms as Uniswap but for about 10-15% of the cost of ETH and with much faster transaction times.
So it was a relatively simple decision this morning to transfer that idle ETH to Binance, and note that I didn't swap it for the other coins I wanted on the ETH network, rather I just sold 90% of it for BTC and then went shopping for other coins from there.
NB I did have a look at swapping ETH for BNB, and this was the final straw:
YES, that's the ETH network offering to swap me $1800 worth of ETH for 3 BNB, which at the time was valued at around $130 a token.
Err, NO THANK YOU!
When it had arrived at the exchange (for a $9 'fast' fee, around 35 times more expensive than it would cost to transfer BNB) I sold 10% of my clunky ETH to Fiat (one has to remember that at $1800 ETH has gone up about 8 times in value since I was stacking it back at the end of 2018) and then bought:
Despite the fact that BNB has been pumping like crazy recently, I don't think it's done yet because it's the main pair in many of the heavy return pools you can stake to in the 'poor man's Bsc pooling options'.
Stablecoins I bought as something of a cash-out hedge - my crypto's done well over the last few months, I have to take something - AND I can stake these for a 90% return on Autofarm, Nice! That return will no doubt come down, but even 10% would be something!
I didn't go too mad on Cake but I did want to add something NOW to the Cake-BNB pool for more, well, Cake! I like the platform, it's cute. What can I say, they got me!
NB if you want links to two recommendations for Bsc staking platforms I'm using
But do your own research and risk analysis.
Note that I'm not banking against ETH here, I'm keeping 80% of what I've got, and I'm glad it's working for me, but I just feel like I've been frozen out of being able to use it, whereas with BSC, powered mainly by BNB, I can USE this actively - I can PLAY with it, I can move my funds around, and the Pancake platform does have a gamified element to it, it's FUN - RISKY maybe, but it's cute.
What can I say I just like to be able to use my coins.
ETH is now a whale game, its future growth will likely be driven by the very wealthy and institutions.
While I feel that with BNB and Cake, they're for the little guy, the everyday crypto user.
And while I think ETH has a long term future and will grow in value, I just get this feeling that for the moment, it feels like there are better and fresher alternatives that have more utility, so it wouldn't surprise me at all if these alternative Defi options grow faster than ETH in 2021.
AND there's a lot of money staked in ETH, it wouldn't take much of that coming out and finding its way to these Defi alternatives as a hedge to really boost the value of some of these alt DEFI coins even further.
But then again this is crypto, so who knows?!?
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