How a crypto whale makes $2 million a day from mining?

Original source: Babbitt

The original author:longcrypto

Original title:"At $2 million a day, what land does SBF, the youngest richest person in the blockchain industry, plant on the DEFI farm? "

Recently, the news that a Chinese movie star earns 2 million yuan a day has aroused wide public concern. Some media used "she shot a drama, you have to work 1191 years without food or drink" as a title report, which made many workers feel uncomfortable. Unfortunately, the star's salary is not honorable, involving tax evasion issues.

And in the burgeoning DEFI industry, making millions a day from mining or farming is not out of reach. The important thing is that the source is transparent and the chain is accessible.

For example, FTX co-founder and CEO Sam Bankman-Fried (SBF), a consultant at Serum, has disclosed a site where nearly $3 billion is farmed, earning about $2 million a day in profits.

Some would say that his capital volume is too large for the general capital volume of DEFI farmers to reference. In fact, three years ago, SBF was virtually worthless in the blockchain industry. Now, at just under the age of 29, he's worth tens of billions of dollars, making him the richest person in the blockchain industry. Therefore, the observation of his positions, for the common DEFI farmers farming or some reference significance.

SBF's wallet holding portfolio

The assets in SBF's wallet are worth $200m; the remaining $2.5bn is spent farming.

In the wallet, the top five holdings are SRM ($170 million), USD ($0.1 million), BBTC ($5.49 million), SXP ($4.94 million), and USDC ($4 million).

SRM is a token of SERUM, and SBF has been helping to establish SERUM since last year. At the recent "Supercomputing · Convergence, 2021 Global Blockchain Computing Conference" hosted by Babbitt, SBF spoke highly of SERUM's achievements.

In the last week, the Solana ecosystem has exploded, and almost all Solana applications are based on SERUM. But with a total valuation of nearly $100bn, SERUM is a daunting proposition. SXP received a boost today when the project owner announced the destruction of 17% of its SXP tokens, currently worth more than $200 million. Subsequently, Binance founder CZ also tweeted to the project side's move surprised. As of press time, SXP is up more than 20%.

Combination of farming

SBF's main funds are used for farming, of which BSC accounts for the largest share, which indirectly indicates that BSC is attracting more and more users to participate.

There are nearly $600 million of funds on Ethereum, mainly focused on Sushiswap. LP is mainly composed of ETH with Sushi, YFI, Aave, Link, SNX, Ren, UMA, and Stablecoin.

These tokens selected by SBF are basically the leaders in the subdivision field. Such as lightning loan leading AVE, predicting machine leading LINK, derivatives leading SNX, etc. In group LP mining, the most worried about is the risk of unpredictable loss. If you choose the industry leader, you can eat the dividend of token price rise and get an additional income. Indeed, since the Defi token reshuffle last October, almost all of the leading tokens have made new highs, and even the likes of AVE and Sushi have substantially outperformed ETH over the same period.

The BSC has $1.9 billion in funds, which are scattered across BELT, MDEX, Bunny, Venus, Pancakeswap, Nerve, Ellipsis.

In Belt, Nerve and Ellipsis, almost all stablecoin farming, annualized income in more than 30%.

In MDEX, the strategy adopted is to use stable currencies such as USDT with ETH, BTC, BNB, XRP, ADA, LTC and DOT as LP to farm land. These assets are basically in the top 10 of cryptocurrencies by market capitalization.

On Bunny and Pancakeswap, BNB is paired with BTC, ETH, DOT, UNI, XRP, BAND, Alpha, ADA, SXP, DODO, XVS, and USDT. It's worth noting that XRP and ADA are criticized by many insiders, while SBF doesn't seem to care.

$2.3 million a day

Farming above SBF would bring in $2.3 million a day at current rates. That's an annualized return of about 33% against a cost of $2.5 billion.

Sushiswap: $450,000 a day

BELT: $330,000 a day

MDEX: $320,000 per day

Bunny: $880,000 a day

Pancakeswap: $230,000 per day

Nerve+Ellipsis: $90,000 a day

With the click of a mouse every day, more than $2 million comes in.

It should be noted that there are risks in DEFI's land. For example, a loophole in a project of BSC yesterday led to the theft of $50 million of funds, and investors' funds are now almost impossible to recover. In addition, the bugs of the project party may also cause damage to the user's funds. For example, the previous upgrade of the BSC lending platform Venus resulted in the bugs of many machine gun pools, which caused damage to the user's funds. Some machine gun pools have not compensated the users for this loss yet.

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