100%
600%
4000% APY
But is it really possible to get returns like this?
Let's cover some absolute degenerate passive income strategies that claim
to earn you over $100 a day, and I will
put them to the test personally by putting my own
money on the line so you don't have to.
And before I continue, I need to say if
there were any video where it's important for me
to remind you that this is not financial advice.
This is it.
Even if a project seems reputable, you
still have the risk of bugs and
smart contracts or hacks in the network.
This is especially true with brand new projects.
Now let's jump in.
I found a new lending platform with
extremely high APYs perfect for this experiment.
This is a new protocol, so I
consider it to be very high risk.
They say it's built for two kinds of people, those
who don't have a lot of capital to invest and
those who don't have the time to master DeFi.
They allow people to set up investment
pathways that anyone can buy into.
And it's not unlike a hedge fund where
you give a manager dollars and then they
invest your dollars into other things for you.
One of the highest yield farming opportunities here
takes USDC and claims to earn 27,000% APY.
Then if I click on the farm and scroll DAOn, I
can see exactly what the farmer is doing with this money.
They're taking your USDC tokens over to SushiSwap.
They're swapping those tokens for Klima tokens and then
staking it on a DAO called Klima Finance.
I looked into this project on Medium and it
launched only back in October, so it's very new.
Klima is a fork of another DAO that we're going
to talk about in a minute called OlympusDAO.
Now, I would personally never invest in
something this risky, but my alter ego
I mean, I wouldn't mind an extra $200, but
anyways, the goal of this DAO seems interesting enough
to accelerate the price appreciation of carbon footprints.
They have a large Twitter following and
I even found them featured on markcubancompanies.com.
If the returns stayed this high for a year,
the $200 that I threw in would turn into
$58,200 in one year or about $158 a day.
But remember, because I would be earning interest on interest
over time, my gains would be much lower on the
first month, only $120 in gains month one, despite over
$50,000 in gains after a whole year.
Also note that there are other factors at play here.
First, if the price of the token
decreases, I will make significantly less money
or even lose money altogether.
Second, the advertised returns will decrease over time.
So in one year from now, they will not be offering 29,000%.
Chances are in one week from now they won't even
be offering that, meaning I will make less money.
Many of these projects are a
bit unrealistic in how they advertise.
So again,
I can afford to run this test and potentially lose
money because I get to make content out of it.
Whether I make money or lose money, I
will still be able to tell the story.
So there's a difference here.
Now, if you'd like more grounded and frankly
better moneymaking tactics and additional content, you can
check out my Patreon linked in the description.
There's a reason why we have
more than 10,000 satisfied members.
29,000% APY, this wasn't even the
highest APY on this site.
70,000% is for the $TIME token.
My gut reaction when I see something like this is
this is obviously a scam or some kind of Ponzi,
but I did research into what the $TIME token is
to see if this was a scam or not.
TIME, the token for Wonderland DAO is a fork
of another DAO on Avalanche called Olympus.
The reason Wonderland is able to offer
these insanely high returns is because they're
not actually paying this out.
Now I'm sure you're wondering, how
do they pay for this then?
The tokens are certainly real.
Well, let's say you purchase one $TIME token for $4,500.
$TIME is backed by one Magic Internet Money token.
It's not pegged to that token. It's backed.
This stablecoin is worth $1.
This means anytime they mint a new $TIME token and
sell it to you for $4,500, it only costs
the treasury about $1, and this is how they can
promise an 870X return on investment.
They are not increasing the value
of your tokens by 870 times.
Instead, they're minting 870 new tokens over the course
of a year and giving them to you.
That's the promise under current APY anyways.
Sure, it's possible to make money, but
you are banking on two things.
First, that new people will continue to join in
order to increase the treasury, and second, that the
percent APY will remain sky high long enough for
you to get a return on your money.
But this doesn't mean that my alter ego
won't throw in some money for your entertainment.
Well, that was uncalled for. Before moving forward,
I want to real quickly explain
the difference between APY and APR.
APR or annual percentage rate never changes.
APY changes because APY considers compound interest, basically
the interest that you earn on interest.
So again, 87,000% APY
doesn't tell the whole story because
rates will decrease over time for all DAOs.
So let's say rates decrease by 3% a week.
For the sake of this example, in one year, the APY
rate would be cut by more than three-fourths to 17,000%.
Still a crazy number, but far lower than 87,000%.
If Wonderland's APY didn't decrease
over the first year,
my return on $250 would be $217,000.
But again, that won't happen.
If the APY decreases by 3% weekly, my
rewards would be equal to around $42,000.
That divided by 365 comes out to about $115
a day for an initial investment of $250.
That's remarkable passive income.
But there are large risks.
Wonderland could get hacked.
There could be a bug in the Smart contract, or
if a large number of people unstaked and sold,
this could easily drop your returns into the negative,
but it gets crazier because there's another fork of
OlympusDAO offering even higher degenerate returns.
Right now, their APY is approximately 24 billion%, with
a total value deposit of around $14 million.
But this can change at any moment.
Almost 50 times higher APY than Wonderland.
The team behind this DAO is anonymous, which is
a bit of a red flag in my mind.
However, this is pretty common with DAOs unfortunately.
However, the community seems to be
pretty positive with the direction that the
developers are taking with this project.
Surprise surprise.
The community is happy about a 25 billion% return, but
still keep in mind that when the price goes up,
the rates of the APY will go down.
So you won't see these
billions of percent return forever.
And it's still easy to lose money
if the token drops in price.
But Degenerate Max doesn't care.
Okay, that guy is seriously the worst.
I'm sorry you had to see that.
Now let's do some calculations to
see what that degenerate could make.
This DAO actually has a built-in calculator
that shows potential returns in dollars and
in Tesla Roadsters. With about $250
now, the calculator on their site says my potential
return in one year's time is a measly $62 billion.
This is certainly more than $100 a day.
In fact, this would make me the
14th richest human on the planet.
But again, extremely unrealistic
for a variety of reasons we've already discussed.
The one week returns which might
actually happen are $363 or about $113 in profit.
We'll see if this happens at the end of this video.
But first, we have the most degenerate
passive income I could find in all
of crypto, another fork of Wonderland DAO.
It's the same concept, same code, same
idea, just even more insane rates.
If this doesn't scream problematic,
I don't know what does.
I don't know how to even pronounce
the APY number because it's so large.
The APY is 21 digits long, but
4 quadrillion times higher than Wonderland's returns.
I can't even picture.
I can't picture that. Like many DAOs.
the developers are not doxxed and are anonymous, but
the feedback of the community is generally positive.
Again, not a huge surprise.
I mean, they're yield drunk.
They actually have 60 million
invested in the project already.
The five day yield as of right now is 80% for five days.
Insane.
This is getting so ridiculous.
If nothing changed, which again won't happen by
the end of year one, I would be
sitting on more than $1 sextillion.
This is going to be me.
- How much does the Earth cost?
I'm going to buy the entire Earth and be king.
- if I make that much money.
But seriously, these numbers will not happen.
APY will decrease and the tokens price could tank.
I can still lose money no matter
how big the potential return is.
And this has happened before.
Another DAO on Avalanche launched a
meme coin project called Snowdog.
Snowdog was another fork of OlympusDAO
except it wasn't made to be a DAO.
It was just made to be a meme coin.
Snowdog took the game theory idea behind OlympusDAO and used
the token mint as a way to fund their project.
When the project launched, there was
a five day minting period.
Users could stake their tokens after minting.
Then after five days minting ended.
Then on the 8th day, staking ended and the team
promised to do this massive buyback of the token with
the funds earned in the treasury for the mint.
So the whole Snowdog community was sitting there eagerly
waiting for this giant green candle just to go
to the moon on the trading chart.
As the Snowdog team promised, they promised that they
would use their entire treasury to buy back the
token until it was empty. $44 million.
But then something happened. Reports showed
that the liquidity was pulled from
Trader Joe to a private liquidity pool controlled by Snowbank.
And it looked as if the buy back happened
but the chart told a different story.
When the private liquidity pool was finally available
for token holders to sell their tokens,
it was discovered that the slippage tolerance
was locked at 99%.
This means that any attempt to sell
would carry the risk of losing 99% of the value.
Shortly after that, the price of the
token 95% and almost everyone who didn't sell
lost all of its value.
Only a few select wallets sold ahead of time
leaving some people suspicious of inside knowledge
that this was going to happen.
And these are the kinds of things that will
continue to happen in the space,
especially as DAOs get more popular.
There is real legitimate risk here.
That being said, we'll check back to see
how this experiment pans out.
It's been two weeks, the results are in
and boy, are they juicy.
First up, we have my 20,000% APY USDC investment
This was routed to a DAO.
Here I invested $200.
After two weeks, I'm sitting on $218.10.
This is a return of 8.6% in just 14 days,
so I can't say I'm upset about that.
However, I will say at one point I was down about
about 20% just a week ago, so there was a lot of volatility here.
In that same time, this token
that this was based on decreased in price by 18%.
So the staking rewards actually made up
for that decrease in price.
Next up, we have one of the most popular DAOs: Wonderland.
In the time that I was staking their token,
it actually increased in price by 6.3%,
which helped me in combination
with their five digit staking rewards.
My total investment here was $250,
and I'm now sitting on $342,
a mind boggling return of 36.8% in just 14 days.
And this is where the fun stops
because my next investment didn't pan out so great.
The multibillion percent APY figures helped me to
increase my total token supply.
However, the total token value dropped 74.4%.
This meant my initial investment of $258
dropped down to just $143, a loss of more than 44%.
But it gets worse, because we have the ultimate meme DAO,
you know, our pal that was showing
an unpronounceable 21 digit APY.
Here I invested $246 and it's now at $58.
This one was wild the entire time.
It actually was my best performer at one point in time,
surpassing a gain of 40% before absolutely
tanking more than 90% at one point
and I'm currently sitting with a 76% loss.
In the time since I bought the token,
it's decreased in price by 94%.
So the astronomical staking rewards couldn't
really help me much, decreasing 94%.
So all in across these four degenerate investments,
I put in $956 and I'm currently sitting at
$761, a total net loss of 20%.
And there you have it, Degen investing so you don't have to.
I don't want this to be taken as a video
saying DAOs are scams by any means,
but I do think that gives a valuable lesson
to not let greed dictate our investing decisions.
The best investments in this space or any space
are going to be solid projects with long term potential,
not just astronomical APY figures.
If you would like me to keep my money
invested in these and report back in a few months,
comment down below.
I'm being honest, finding passive income in crypto is like
finding a good used car dealer.
There are so many scams and rug pulls with
just a couple of diamonds in the rough.
There's just far safer ways to earn money
in this space than the crazy APY.
And I think it pays to think long term.
Now one way that you can plan ahead when it comes to crypto
is by using a crypto retirement account.
I partner with iTrustCapital who allows you to
buy and hold cryptos within your Roth.
This means that you can trade at zero capital gains
in a tax advantaged account.
If you're interested, I'll have a link in the description
that gives you $100 in Bitcoin just for signing up.
From here, I'd recommend you check out my other video
that dive even deeper into the wild world of DAOs
that you absolutely should check out.
Now I would like to thank you so much for watching
and I hope you have a profitable day!