Boxmining

Tag: passive income

  • YFI Yield Farming with yEarn Pool

    YFI Yield Farming with yEarn Pool

    Yield Farming is a popular method for cryptocurrency owners to gain passive income. It involves taking advantage of various incentives rewards for locking-up (aka staking) different cryptocurrencies. This article focuses on yield farming for the $YFI token which has become the highest performing yield farming pool.

    Check out our video on how to potentially earn 600% returns through YFI Yield Farming!

    The yEarn project has launched its own governance token – $YFI – this week, sending the Decentralized Finance (DeFi) Yield Farming scene into a frenzy. As of this article, staking stable coins (USDT, USDC, DAI, or TUSD) into the Y pool will yield an astronomical 896% Annual Percentage Yield (APY). This is due to the incentive token $YFI being distributed to staked token holders, making this the single best yield farming pool right now. This has sparked a huge amount of interest in both searches for the $YFI governance token (trending right now on coingecko). Since the token launch, more than $60 Million of new capital has been deposited into the Y pool. Calculate yield using the community made yieldfarming tool.

    WARNING: Yield farming involves a high amount of risk due to the experimental nature of the Ethereum network with potentially undiscovered critical vulnerabilities. Never stake/farm more than you can afford to lose. This is not Financial Advice.

    What is the yEarn (iEarn) Pool

    The iEarn “Y” pool is a yield aggregator – it automatically invests its capital into different DeFi projects – selecting those with the highest yield and return on investment. As a DeFi protocol, a smart contract keeps the invested funds – which makes the project non-custodial. The pool itself is comprised of 4 different stable coins – USDT, USDC, DAI and TUSD – with a total of over $103 Million USD in currency reserves (Assets Under Management – AUM). These reserves are then lent out to different protocols that offer the best rates of return, including Compound, Aave, and dYdX. yPools are considered riskier than other DeFi products such as Compound because lend capital out to a series of protocols – which themselves could be vulnerable to critical vulnerabilities.

    How to Earn the YFI Token

    There are two pools that reward the YFI token for staking. The first and easiest pool to access is the Y Pool on Curve.Fi. This pool is a collection of stable coins that are automatically invested in different lending protocols. This type of pool is usually considered a higher risk due to possible vulnerabilities not just with its own smart contract, but with other smart contracts too.

    Deposit and stake option on Curve.Fi

    How to to earn YFI tokens

    Unfortunately “Yield Farming” for the YFI token has ended. When YFI first launched, all 30,000 tokens were distributed to stakers on the https://ygov.finance/staking platform. Although initially there were plans to distribute more tokens, attempts to come out with a plan to do so have all been voted down in the Y governance. This means it’s unlikely that new $YFI tokens will be distributed in the future. Other tokens such as YFII and YFV still have token distribution for yield farmers.

    What is YFI token

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    Liquidity provider profit on Y Pool

    YFI is the governance token for yEarn (previously known as iEarn). Tokenholders are entitled to vote on upcoming governance decisions for the network – such as potentially stopping all-new distribution of the token. Creator of YFI, Andre Cronje (@AndreCronjeTech) has stated that the token has no intrinsic value.

    “We have released YFI, a completely valueless 0 supply token. We re-iterate, it has 0 financial value”

    Andre Cronje

    This being said, the current wave hype wave and token dynamics have driven up the value of the token. The token follows the “Governance” model where it’s value comes from voting on where the protocol will go next. On top of this, the incentivized Balancer pool (YFI 2%, DAI 98%) requires the staking of $YFI, which locks up further supply. Simply put, DeFi farmers are locking up YFI and DAI in order to receive BPT tokens which could be staked on ygov.finance to gain an additional $YFI. This type of cyclic farming create pseudo ponzinomics and could lead to potentially disastrous results.

    Balancer Warning & new coin minting risk

    One of risks that was mitigated by the team was with token issuance. Currently there is a max cap of only 30,000 YFI tokens. Earlier this week it was discovered that there was a master key which permitted YFI developer Andre Cronje to mint new coins and potentially flood the market with new coins. If he did this, it would of been possible for him to take the entirety of Pool#2 and Pool#3 on Balancer, with a total of more than $150 Million USD. Luckily this did not happen, as he quickly created a multisignature address which requires 6/9 key holders to agree to minting new tokens. The purpose of this is to remove single party risk as 6 of the 9 keyholders are required to agree to create new coins. On top of this, even if they do agree, the community will have 3 days notice before anything happens.

    Overall the long term objective of YFI is to leave control of the total supply of YFI and distribution up to the community to decide. The voting aspect of YFI will allow governance token stakers to decide who to do with the platform.

    YFI distribution stop

    Distribution of $YFI tokens will temporarily stop as new contracts are being prepared. Times for the pools stopping are as follows:

    Resources:

    yEarn documentation – http://docs.yearn.finance
    yGovernance and staking – https://ygov.finance
    Pool Information / Calculator: https://yieldfarming.info/
    Curve Guide on Pools – https://guides.curve.fi/how-to-choose-the-right-curve-pool-for-you/
    Coindesk Report: https://www.coindesk.com/troll-token-why-defi-yield-farmers-are-now-all-about-yfi

    Decentralised Finance (DeFi) series: tutorials, guides and more

    With content for both beginners and more advanced users, check out our YouTube DeFi series containing tutorials on the ESSENTIAL TOOLS you need for trading in the DeFi space e.g. MetaMask and Uniswap. As well as a deep dive into popular DeFi topics such as decentralized exchanges, borrowing-lending platforms and NFT marketplaces

    The DeFi series on this website also covers topics not explored on YouTube. For an introduction on what is DeFi, check out Decentralized Finance (DeFi) Overview: A guide to the HOTTEST trend in cryptocurrency

    Tutorials and guides for the ESSENTIAL DEFI TOOLS:

    More videos and articles are coming soon as part of our DeFi series, so be sure to SUBSCRIBE to our Youtube channel so you can be notified as soon as they come out!

    Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.

  • DASH mining guide (2020 Edition)

    DASH mining guide (2020 Edition)

    DASH mining is the process of generating new cryptocurrency using specialized mining machines known as “ASICs”. This guide teaches you the basics of DASH mining and how to set up your ASIC. DASH miners are specialized machines designed to solve the “X11” hash function used to protect the DASH network. When a miner finds a hashed result that meets the network difficulty requirements, it is submitted to the DASH network. Once verified, the miner will be rewarded in DASH cryptocurrency, thus generating an income for the mienrs. In order to mine DASH, you’ll need to get an ASIC. It’s no longer possible to mine DASH using CPU or GPU (unlike Monero or Ethereum mining).

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    What is DASH

    DASH (also known as Xcoin, Darkcoin) is a form of digital currency that is not controlled by any government or individual entity. DASH is based on Bitcoin technology, with some major differences between:

    • Anonymous transactions – DASH transactions are anonymous, so it is impossible to trace the source of DASH funds. This offers significant privacy benefits for DASH users.
    • Instant confirmation – Masternodes instantly confirm DASH transactions, whilst Bitcoin transactions take 10-30 minutes to confirm.
    • Low fees – DASH transaction fees are significantly less than Bitcoins or any other bank for that matter.
    • X11 Algorithm – DASH mining uses a different algorithm called X11.

    How Profitable is DASH mining

    Daily Revenue from mining rewards differ everyday – this is because mining difficulty changes and hence the daily reward. Revenue is dependent on the power of the Graphics Processor Unit (GPU) involved, with higher Hashrates being faster and more profitable

    • Network difficulty- Think of it this way, every day the same wage gets paid to all the DASH miners in the world.
    • The value of DASH– The current USD value of DASH is important for those seeking profits in fiat currency (USD) or even Bitcoin (BTC).

    What is X11?

    X11 is a chained hashing algorithm that uses 11 different hashing algorithms to secure the network (hence the “11”). The algorithms Blake, BMW, Groestl, JH, Keccak, Skein, Luffa, Cubehash, Shavite, Simd and Echo are used in sequence, repeated one after another until the very last function. This will give a final hash value which is then submitted to the blockchain if it meets the difficulty requirement. X11 is designed by Evan Duffield to improve the security of the blockchain. The reasoning is that if one of the algorithms are compromised, there are 10 others to continue to protect the network.

    The second reason X11 was designed is to make it harder to create mining ASICs (although we know that this is now possible). For a period of 2 years, it was possible to mine DASH using a conventional computer via CPU and GPU mining. However, this is no longer the case as chip makers have found ways to create high specialized X11 ASICs.

    DASH Pool Mining

    There are two main ways to mine DASH – solo mining or pool mining.

    Pool Mining (working together)

    • Work with others to mine and share rewards
    • Get paid per share, on a hourly or daily basis
    • Less random / dependent on luck
    • Pools take some fees (0.5-3% depending on pool)

    Solo Mining

    • You mine the entire block reward (3.11 DASH per block) – no pool fees
    • Random Chance and probability – you can go days or months without rewards
    • Not viable if Hashrate is low – single GPU will take years to mine a block

    Generally speaking, pool mining is the preferred method for most miners. This is because it provides a reliable stream of daily income, rather than large random bursts. Thus it allows miners to better calculate their profits and losses.

    List of top DASH mining Pools

    There are 2 factors to consider when picking a DASH mining pool – the location of the pool and it’s market share. The top priority would be location – the closer the pool is to you geographically the better. This is because sometimes due to network latency, shares that are mined could be “stale” – as new blocks are created rendering older blocks obsolete. It’s also important to know that Chinese servers are behind the Great Firewall of China, meaning that connections could periodically break. This means that choosing a server with low latency and close geographical location would give the highest yield.

    The second factor is the market share of the pool. The larger the market share, the more consistent the rewards. This is because blocks are continuously mined by the pool, and hence they can pay out at a consistent rate. This reduces the impact of the randomness of block creation.

    We recommend finding a pool close to your location with a high market share.

    PoolMarket ShareLocationReward SystemPool Fee
    Antpool26%Asia / ChinaPPS (Pay per Share)
    PPLNS (Pay per last N Shares)    		1-4%
    ViaBTC17%Asia / EUPPS (Pay per Share)
    PPLNS (Pay per last N Shares)     		2-4%
    Coinmine.pl7%EUPPLNS (Pay per last N Shares) 0-1%
    dash.btc.top4.7%ChinaPPS (Pay per Share) 0%-2%
    miningpoolhub.com1%EU
    USA    		PPS (Pay per Share)
    PPLNS (Pay per last N Shares)     		1%

    DASH Cloud Mining

    In 2020, DASH Cloud mining contracts are not profitable. This is because mining has become more competitive with lower margins – forcing miners to reduce costs. Cloud mining is hit the hardest because of they have large overheads like advertising spends and legal costs. In our latest research, we found that cloud mining providers were charging 184% for the same hashrate than home-made solutions.

    What else can I mine with X11?

    When you purchase a DASH miner, you’re limited to mining the X11 algorithm. X11 algorithm can mine coins such as Smartcoin, Pura, and Hatch. Admittedly, there are not many other good coins to mine using X11 ASICs, with DASH being the most valuable of the bunch. This is unlike other algorithms such as SHA-256 which is used in Bitcoin mining, Bitcoin cash and BitcoinSV.

    Masternodes vs. Mining

    There are two was to make a passive income on the DASH network – mining and masternodes. Like miners, masternodes also generate a DASH reward every time a block is created on the DASH network. The reward distribution is as follows:

    • 45% – Miners reward
    • 45% – Masternode reward
    • 10% – DASH treasure (DASH DAO – Decentralized Autonomous Organisation)

    As you can see, masternode node holders get equal amounts of rewards as miners. In order to become a masternode, a total of 1000 DASH must be staked by the node holder. At the current price of $60 per DASH, this means a total of $60,000 must be staked in order to gain masternode rewards.

    The function of masternodes is to provide additional layer 2 services to the network. This includes sending pre-approved transactions (InstantSend), improving security of the network (Chainlocks) and privacy features (PrivateSend). The 1000 DASH required by the masternode serves as collateral to ensure good behavior. If the funds are moved or spent, the associated masternode will go offline and stop receiving rewards.

    The biggest factor in deciding whether to mine DASH or getting a DASH masternode is the financial commitment factor. The advantage of a masternode is that the 1000 staked DASH can be fully returned at the end of operation, whilst mining equipment will become obsolete over time. In addition, masternode holders are given the right to vote in the DASH treasury which gives funding to future developments. The disadvantage of masternodes is the high initial investment, which cannot be less than 1000 DASH.