Thoughts?

Im seeing people make 5-10% per rebase on some of these.

I know daos are long term plays, but the insane apys and 5-10% roi per rebase(8 hours) I feel makes it lucrative for some gamble, i.e if you

believe that the price of that token wont go down more then rebase rewards.

I personally am holding some for long term thats the plan, but I see some high rollers making a huge amount of money really quickly and shifting those into stable.

Especially if youre willing to spend time on discord be part of the community and actually see whats up, you can tell when there will be a dump, since all small market caps.

If a dao makes announcement to have temporary insane high apy for 2-3 rebases or 1-2 days, you know there will be a spike in interest and more people coming in price going up, etc and you can easily come in and out.

Let me know thoughts?

You will be scammed like everyone who JOINS and not OWNS the server

what do these words mean?

honestly i dont know much about daos , but my friend does exactly what your saying , he jumps into new projects and gets out at pumps after staking for a couple days or maybe even a week . his profits are pretty astonishing .
He did get rekt by snowdog/snowbank though and i know that ate a massive chunk of his profits from other ventures

I've been heavily researching multiple DOAS for a couple months now. I have a fairly decent understanding of how they work, why they work, and which ones are better than others, atleast to the best my of knowledge.
Anyway, the risk of losing money in these doas is much less than you'd think... Of course we have the concern of a rug pull but assuming the project doesn't rug pull and you do your own research, follow them on discord, participiate in the community ect, you should get a good feel from the devs on wether or not its likely to rugpull.
So assuming there's no rugpull... Even if your DOA token drops all the way to $1.00... You'll still come out ahead substantially.. These are the tiny details you pick up on from reading all their whitepapers over and over.

Here's an example, I'm going to pick one of the Top DOAS in my opinion and walk you through an investment today and your ROI if the coin crashes all the way to $1.00.
Current Token Price: $850
APY 18,000,000% ( we can and should expect this to go down over time, but just for grins let assume it stays the same for 1 year)
You purchase 10 tokens and stake them for an initial investment of $8,500.
Now with 10 staked tokens for 365 days at 18,000,000 APY
AND A TOKEN PRICE ON ONLY- $1.00 at the end of the 365s ( Crashed from $850 per token down to $1.00)
Your ROI after 365 days is $1,375,000

So all things considered it's not nearly as risky at it appears because even if we assume the absolute worst case scenario and the token price crashes all the way to a dollar, you still come out ahead a stupid amount.

To pin point your breakeven point on a crash all the way to a dollar.. Assuming the figures above, about 207 days into staking, you'll break even on your initial investment of $8,500. So if you bought in today at $850 and in 2 months the token price is 1 dollar. Still in 207 days, you'll have accumulated enough Tokens to equal 8,500.

Of course do your own research and make decisions how you see fit. That being said, I would highly discourage a bunch of continuous staking/unstaking based on speculated price shifts... You're going to lose a lot more in missed Rebases trying to beat the market than if you were to just Stake, and Stay the course. It's way easier, less stressful, and
very unlikely to work in your benefit if you try to play that game.

One final note, there seems to be a lot of confusion between peoples understanding of APY vs APR.. There has been for quite some time and still is today, a lot of investment avenues that are paying what equals the same amount as these DAO projects but the numbers are much smaller. People see Millions of percent and don't understand that
liquidity pools paying 1000s% in APR, are generating the same returns for liquidity providers as these DAO projects provide to their Token Stakers with millions in APY.

Hope this helps.

This post was edited by spagettifluff55 on Dec 30 2021 12:11am

Thanks for that message.

The only thing youre wrong about imo is that, you make it seem like its a no brainer you can not lose.

However, most crappy daos even if they dont get rug pulled go to 1$ in < then a week and the roi will obviously not stay that high.

SO, despite what is advertised, if the project fails and the devs pull out up and leave and drop the ROI to like 5% per 5 days, and you bought token at 800$ which is now dropped to 1$ youre not going to make that money back.

For your logic to be true, the dao has to be seemingly functioning and not a dead project by the time it reaches 1$.

You assumption in the APY staying the same is extremely wrong here.

Holding a DAO long term requires it to exist long term. And yes, if it does continue to function at any decent 5 day ROI, hypothetically you will eventually make your money back even if the price keeps going down.

Currently the only long term HODLs for me are TIME/HEC/NMS. And when I say long term, I mean....

I will reassess in 3 months. and try and start getting in a habit of pulling out a little bit a week once in profit to try and recoup the initial.

APY =yield
APR = pay

that's the only difference, it's used to standardize comparisons so the general public can compare products, typically bank CDs for deposits or loan rates (APR includes origination fees, so if I'm 1% lower than bank next door but I charge an insane application/origination fee by using APR I can't swindle

I think what you are trying to say is that if the % drop in coin over a time period < APY, then yield farming is good?

OP, do you have examples of very profitable ones you have done? From my understanding is the longer you are exposed to the DAO the more you lose but maybe I'm mistaken. I don't think I'm allowed to post links, but I really like Taiki Maeda's youtube, his most recent video goes into detail on DAOs and how they are scammy.

I think uniswap/balancer/some of the other liquidity pools just seem like the much more legitimate way to approach this instead of doing some pseudo-ico and then inflating investors into nothingness.