- Avalanche makes up almost 5%
of all the liquidity and defy,
and is teeming with new projects
such as yield farming,
Dexes, NFTS and much more,
giving that token massive utility.
And today we're gonna be exploring
the Ava ecosystem
and looking at five different ways
to create passive income.
Ranging from a safe 8% per year
to a more risky, almost 1% per day.
And you're going to want to stick around
to the end of the video
because I'll be doing another giveaway.
Now what makes Avalanche
and the projects within its ecosystem unique
And every layer one protocol
that's claiming to take out Ethereum
is claiming to do two things.
The first is fixing the scalability issues,
and also processing transactions much quicker.
And currently, Avalanche is boasting
the ability to be able to process
over 4500 transactions per second,
it already has thousands of nodes on its network,
and it has one of the most aggressive
burn programs in all of crypto.
Meaning that all of the Avalanche tokens
or AVAX that are associated
with transaction fees,
will permanently be removed from circulation.
And we all know by basic rules of economics,
when supply goes down and demand goes up,
price also goes up
and as the old adage goes,
rising tide lifts all ships.
So as the actual AVAX token increases in value,
the actual projects within the ecosystem
might increase in value and utility as well.
And speaking of utility,
would give this video much more utility
and the ability to reach a broader audience,
if you hit that like button.
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Now the first and most straightforward way
of creating passive income
inside of the AVAX blockchain
is just staking the AVAX token itself.
And we'll be discussing two different ways
of doing that in this video.
The first way is heading
over to the AVAX Network website,
creating a wallet
and then you can stake those tokens
in your AVAX wallet for an 8.99% APR
on your stake AVAX tokens.
You'll then have to choose a validator
and all a validator does
is verifies transactions on the blockchain for a fee.
And these validators range in fees,
from being free upwards of 99%.
And when I chose the validator,
I chose one that was around 3%.
And they're always changing,
but I like to pick ones that aren't too cheap
or too expensive,
because the cheap ones
can increase the price on you without any notice.
Another way you can stake your AVAX,
which isn't as safe as actually staking AVAX
within the wallet,
is heading over to Midas investments,
a protocol I've talked about before,
where you can earn a little over
a 17% APY on your stake AVAX.
And they do this by actually compounding your investment
and adding it back to your original principle
even they almost double the interest
of the first method we've mentioned.
And it is worth noting
that these guys have been in crypto
for about four years,
have over 20 members and everyone has stocks.
Next up we're going to head over to beefy finance,
a multi chain yield optimizer
I've talked about a few times before.
And all the multi chain optimizer is,
is instead of just focusing on one chain,
they focus on a handful of chains such as
BMB, Phantom, Avalanche and much more.
If you're new to the protocol,
they have pre-curated pools
that are sometimes even higher
than the actual projects themselves are offering.
And they do this according to the website
through a set of secured
and enforce investment strategies
to help maximize rewards and liquidity pools.
And when you head over to the actual AVAX tab
of the website,
you can see that they have hundreds of pools
to choose from available,
that you can sort from by safety score APY,
liquidity and much more.
And although they have hundreds
of different pools to choose from,
I'm only going to be looking at two.
And the first pool we're going to be looking at is JOE,
which is the native token of the Trader JOE exchange,
the largest exchange on the AVAX network.
And it's currently offering a 17% APY on the Joe token.
And the one reason why I chose this pool
is because as the ecosystem grows,
the main exchange of that ecosystem
usually grows as well,
hence the actual token itself increasing in value.
The second one I'm going to be looking at
is the AVAXL/AVAX token pairing
which is coming in at a .28% interest daily,
or a 183% APY.
Not only does this pool have
over a nine on a safety score,
but it also has over $1 million in assets locked up.
And if you aren't familiar with the AVAXL token,
it's a protocol on top shelf finance
that's launching stable coins
on finance Phantom and the AVAX smart chain
and it's helping decentralized borrowing.
It's worth noting too,
that if you have a higher risk tolerance,
there are some tools that have a much higher APY
on beefy finance for AVAX
but I'm not going to be mentioning in them in this video.
Up next we're moving over to vector finance,
a yield optimizer that focuses on swapping stable coins
for lower fees.
The main benefit with this
is you can stake your stable coins on this platform
for a higher APY,
and staking stable coins is one of the lowest risk ways
to earn interest in crypto.
However the APY's on these
are usually a little lower
than some of the other ways I'll mention.
And they have a variety of stable coins
ranging from 4% upwards of a 15%
and they also have Terra Lunas UST.
And one huge update for Avalanche
is that Terra Luna announced
that they'll be using AVAX as collateral
for their main stable coin UST.
And it doesn't end there.
They're also going to be launching
some defi protocols inside of the AVAX ecosystem as well
and as optimistic as I am about the future of Terra Luna,
I think this sounds amazing for that of AVAX.
There is also another stapleswap
inside of AVAX called platypus finance,
but I'm not going to be touching on it here
but maybe I will in another video.
For now we're going to move on to the last project
which is called EtherStones,
and it's a node service combined
with a reflection token
that's offering its investors a 450% APY
on their investment,
which comes out to be about a .93% interest per day.
It launched in March of 2022.
So it's still a new project,
and it runs on the native token, E T H S or ETHS.
And it is one of those higher risk projects
where when you purchase a note,
your original investment is gone.
But there are a couple of reasons why
I went ahead and jumped in on this one.
To start there are a couple of main problems
all node and reflection token space.
And they address both of these.
The first if you aren't familiar with a reflection token,
it's a crypto that has fees associated
selling of that crypto,
where the fees are then collected by that protocol.
And these funds are either distributed elsewhere
to either some kind of liquidity pool
or back to the users
and this creates revenue for that token,
and it also incentivizes holders not to sell.
The first crypto to implement
the reflection type protocol was Safemoon,
and we all know how disastrously that ended.
However, EtherStones is taking a different approach
to this problem.
The main problem with reflection tokens
arises when the hype around those tokens dies
since it thrives on the transactions occurring.
And this lower volume and trading of the token
usually results in the tokens death.
And this is countered through the node protocol
they implemented to create additional fees.
Now this particular node is only offering a 450% APY
and I say only because this is
one of the lowest APY notes I've seen.
The problem with a lot of nodes
is service type projects,
is that they start with extremely high APYs,
and then they have to modify those returns
only after a couple of months of launching.
And an example of this would be
Thor financial cutting its initial returns
from a 3.5% interest per day
to that of a 1.31% interest per day
resulting in a token crash
and a loss of investors confidence.
And for every EtherStone that's held,
a certain amount of each token is earned
for that particular EtherStone.
And the biome for this project
is very low compared to some of these other protocols,
which is why I went ahead and jumped in to do it.
You can jump in for as little as five ETHS,
which comes out to be about $4.
Because the native token is about 75 cents,
and the max investment can be 1008,
which is about $750.
And I picked up two of those
which came out to be about 830 bucks
when I went ahead and got it.
There are four types of stones,
Pebbles, Shards, Stones, and Crystals
all have varying daily return rates
ranging from .66% interest per day
to .93% interest per day, respectively.
And every 48 hours,
you can either withdraw your ETHS for a fee,
or you can take those and put them in a vault,
wait for days and then withdraw them
without any fee attached.
And that's what I've currently been doing.
And it's worth noting too
that there's incentivization
to compound your ETHS in the ball.
Every time you compound,
there are certain tiers
where you can earn more daily interest
on top of what you're already earning,
the max topping out at 1.578% interest per day,
which comes after 108 compounds or about 216 days.
Now some safety measures
that they do have in place,
is they've been audited by solidity,
liquidity walks with Team finance,
and they've been KYC'd by assured defi,
as well as privately being doxxed.
And this is all great and I like the steps
they're taking here to give investors a peace of mind.
But at the end of the day,
we've seen projects
with more safety measures in place than this,
still run off with investors money
so just buyer beware.
It's also worth noting too
that they have a small circulating supply
of only 5 million ETHS tokens.
However, it does say that they could meant more if possible,
but the fact that they're burning some of these
as of right now
makes me think that this won't happen.
And as I promised,
I told you I'd be doing one giveaway.
I was already invested in EtherStone
so I reached out to see if they wanted to do a giveaway
for one subscriber.
So we're going to be giving away this Stone teirs EtherStone
which comes out to be between 120 ETHS and 250 ETHS
and accumulates .83% interest per day.
All you have to do is click on the link below.
Follow the EtherStones Twitter
and one week from today I'll be announcing that winner
and as always guys if you do like videos
about making money online,
be sure to like, subscribe.
New videos coming out every single week.
Thanks for watching and I'll see you next time.