Farming Available | How It Works...

in LeoFinance2 months ago

I took a much closer look at the BFG token getting in on it this past month after it got listed (See post #1 |#2 | #3 | #4) which so far has been a good deal. There recently was a proposal for farming to be launched which passed and now it went live. These are some of my thoughts on it...

One of the reasons I am drawn to Gambling Dapp Dividend daying tokens like BFG, WIN, & SBET aside from the fact that I'm a Sports Bettor which makes me quite confident in being able to put a value on them, is because the model is quite straightforward and the earnings actually come from somewhere. Gamblers will gamble and lose money since the house has an edge and always wins, token holders get part of that gambling revenue for some nice passive returns. Since there is still an ongoing crypto adoption, it can be expected that volumes will grow on many of these sites meaning both the dividends and price of the token possibly could increase.

When it comes down to DeFi Farming and many of these high returns just for locking some coins, it has always felt like a lot of Hocus Pocus to me aside from the straightforward liquidity providing in a pool taking the risk of impermanent loss.

BetFury Farming

So right now, it is possible for people who have liquid BFG which is pretty much all BFG that was mined before trading went live (now those who play and earn BFG see it locked up for 6 months earning dividend drops in the meantime) to just lock their coins and get more BFG. This extra BFG comes from part of the total BFG supply which is not yet in circulation. The number of coins that can be farmed is fixed and how much % of returns depends on how many people stake their BFG.

It started out at 1524.239% around the start and it has come down to 2800% a bit more than an hour later with a lot of BFG being staked into the contract.

I always try to come to a simple understanding of how everything works and why exactly it is in place to help the project forward.

In this case, my best guess is the following... (Please correct me if I'm wrong on this and if there is a better explanation)

Giving more coins to those that lock them up outside of the dividend pool is a nice way to make the big holder richer since the coins directly come from the Supply that is not yet in circulation while they are likely the first to enter the farming pool getting the big early returns. It also decreases the amount of BFG that is being staked to get the gambling Dividends making them look higher. Since people want to get the high returns of the farming pool, the selling pressure drops while buying demand increases pushing up the price. This at the same time gives a potential for bigger holders to sell some of their holdings at a higher price if they wanted to. With the Price of BFG being higher, it gives more incentives for the Gamblers to gamble since the coins they earn by doing so are worth more. This makes the dividend pool go up giving even more incentive to gamble because the returns from BFG tokens from the dividend pool go up. At the same time, the farming 'opportunity' draws more attention from the DeFi & Crypto world which is an indirect way to promote the website.

Basically, all benefits are based on the short term with them being a potential liability for the long term as more coins get in circulation and things might come crashing down after the farming period is over. If I was a big holder wanting to dump my coins, this would be the perfect scheme to do so. There might be other factors in play that I don't see, but I generally don't see how this farming helps Betfury in the long run really as it doesn't really create all too much added benefit aside from maybe a bit more eyes on the project.

What I am doing with my BFG...

I had my fair buy price set at a maximum of ~0.03$ and managed to get in for 122500 BFG at an average price of 0.0225$ this past month. I still anticipated possibly buying some more as the returns are really good and the platform itself is also one of the best I have come across as a Sports Bettor. It now roughly costs 0.08-0.10$ to mine 1 BFG by playing the available games on the website and there is no point for BFG to get above that price since it's better to just start randomly gambling instead of buying BFG on the market if that happens. I kept 100k staked to get my part of the Dividend pool which I assume will start giving higher returns and took 22500 BFG to both test the withdrawal function on the site and to get at least a bit from the farming pool since this is something I regretted not getting into a couple times in the past.

It comes to no surprise that the withdrawal is still pending and I assume it to take a day so the ones that orchestrated and voted for this farming can get the most out of the massive early returns.

While writing this post, the returns already decreased to 2308% and it's the question of how much it will be once I can lock my own stake.

Overall I'm still quite positive on and am quite happy I managed to add it to my Gambling Dapp Dividend Portfolio getting a decent amount of them at what I believe was a pretty good price. Personally, I'm not a buyer anymore at the current prices and will keep holding onto my BFG. If I was a gambler, I would love the website and the model where you can mine BFG for playing. I'm just sticking to taking what I believe are +EV bets there on their sportsbook though.

More info on Betfury and BFG...

Posted Using LeoFinance Beta


can you tell me about how many times it can increase in price

What do you mean with how many times it can increase in price ?
For as far as BFG goes, it's somewhat linked to the price it cost to mine them and it's unlikely to go above that. The Price of BTC / ETH / BNB / TRX also has in influence as that going up or down means it's cheaper of more expensive to mine while the value of the dividend pool is linked to it.

Is your withdrawal still pending?

Posted Using LeoFinance Beta

It got processed properly (I guess it took 2-3 hours) and I have it staked in farming now