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Ape Coin Alchemy: Bored Ape Yacht Club (BAYC) Owners Still Earn $90,000 Monthly

2023/2/1

This article is authorized to be reprinted from Josh Lu Zijian

The Bored Ape Yacht Club's parent company Yuda Labs has recently launched a cryptocurrency called Ape Coin$APE, and it has been making continuous moves. Since the introduction of the staking system in December 2022, it has attracted envy with its super high annual percentage yield (APY) that surpasses 200%. Even those without Bored Ape NFTs can earn steadily by participating in the staking system for holders of Bored Ape NFTs. Interested friends can refer to the details in the article!

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Table of Contents

What are the ways to stake Ape Coin? What is the return rate?

Currently, there are four pools available for staking. Real-time annualized return rates can be viewed on the Dune Analytics platform. The following data is as of January 29, 2023. The total staked amount in the four pools exceeds 100 million Ape Coins, worth over $600 million, accounting for approximately 27% of the total circulation. It can be said that participation is very enthusiastic.

BAYC Pool:
10094 $APE+BAYC NFT Annualized Return Rate 166% APR
Requires BAYC NFT for participation, with a maximum staking amount of 10094 APE
MAYC Pool:
2042 $APE+MAYC NFT Annualized Return Rate 179% APR
Requires MAYC NFT for participation, with a maximum staking amount of 2042 APE
BAKC Pool:
856 $APE+BAKC NFT Annualized Return Rate 180% APR
Requires MAYC or BAYC NFT plus a BAKN to participate, with a maximum staking amount of 856 APE
APE Pool:
No NFT required, only stake $APE to participate with an annualized return rate of 98% APR

How much can you earn monthly by staking Ape Coin?

Although the APR for staking has been provided, it may be difficult to understand how much can be earned in a month. Here is a website called Rareboy that allows you to enter your staking address to calculate the monthly earnings. For example, participating in the MAYC staking pool as of January 29th can generate an income of $1862 per month, approximately 57,000 TWD. The current floor price of MAYC is about 15 ETH equivalent to around 750,000 TWD. Those who already own MAYC NFTs are suitable for staking; however, for those without, considering the high cost of a 179% APR return rate is crucial.

Ways to earn a high APR without NFT

Currently, the APR for staking without NFT is about 98%. Here is another method to achieve a higher APR for reference. Josh himself uses this method. Firstly, introduce an NFT lending protocol called BendDAO. BendDAO primarily focuses on NFT lending. If you have blue-chip NFTs that you do not want to sell, you can use them as collateral for loans. BendDAO has also developed an Ape Staking system, which helps match users for Ape staking. It is a matching platform where NFT holders can set their profit-sharing conditions. For example, offering 30% of staking profits for providing an NFT, leaving 70% for the Ape Coin provider, as shown in the image below:

Users can search for suitable mining partners in the Pairing listings. Apart from interest rates, attention should also be paid to the amount of Ape Coin required for mining. For instance, the majority of MAYC requires 2042 Ape Coins, but some players may have different requirements. However, the maximum staking amount for the MAYC pool is 2042.

How much profit can be increased using BendDAO?

Using Josh's example, selecting partners who request profits within 23% can increase profits from 98% to 155%. This represents an approximately 50% increase in profits. By staking two MAYC (pairing 2), one can earn passive income of 90,000 TWD per month.

The capital required is 4084 (2042 x 2), equivalent to 759,000 TWD, approximately the price of one MAYC. Is it more cost-effective to rent in this case? If not profit-sharing, two MAYC + 4084 APE will require a capital of 2.25 million TWD, which is three times the original amount, but the profit is only increased by 20-30%.

※Note: BendDAO charges a 4% profit fee for its services.

What are the risks of achieving a high APR using BendDAO?

Earning 90,000 TWD per month with a capital of 759,000 TWD may sound like a scam, but there are risks involved. Let's examine the risks:

1. The possibility of being hacked due to bugs in the BendDAO protocol
2. Potential loss of capital due to a significant drop in Ape Coin

Regarding the first point, according to BendDAO, the contract has been audited, and detailed FAQ information is available on their website for reference.

For the second point, which is the primary concern, as the profits are currently high, there is a fear that many miners might be selling off APE once mined, causing a continuous selling pressure leading to a price drop. However, contrary to expectations, the price has been rising instead of falling recently. If you entered the mining in mid-December and participated in two MAYC pools by staking 4084 APE, costing around 360,000 TWD, you would have already doubled your investment. To hedge against a potential drop, consider opening a contract to short an equal amount of Ape Coin. This way, you are not affected by price fluctuations. If it falls, the contract makes a profit while the spot makes a loss, offsetting each other. However, be aware that you will need to pay funding rates. The average funding rate for shorting Ape Coin in the last 20 days is 0.18% per day, equivalent to 66.8% annualized return rate APR. If absolute security is your priority, sacrificing some profit to protect your capital is a conservative and safe approach. While you may not profit from a rise, you won't be hurt by a drop either, making it a very safe strategy.

In conclusion, Josh believes that using shorting along with the BendDAO pairing protocol to mine APE for a high APR is a good strategy. Currently, the APR for the MAYC pairing on BendDAO is only around 120 APR, but it is worth paying attention to as Ape Coin is still on an upward trend. Some participants may have already made a profit of 50% or even 100% and may consider taking profits and stop mining. At this point, there may be excellent profit-sharing conditions for MAYC available. One of Josh's MAYC pairings was obtained in this manner. There was originally a 130% APR, but when I saw a 155% monkey available, I immediately unstaked and switched to the new one. Each investor should consider their investment strategy, and there is no set standard for shorting. It is essential to assess the risks you can bear.