DeFi Investment Experiment: Update #2 Time for an update on my DeFi experiment. Here is my explanation and next update. The link goes to the original article describing what I am doing, where, and why.

Dudelange Let’s review.

Amiens The Goal: 20% in One Month. Invest $500 to try to yield $100.

buy Pregabalin uk We are 3 weeks into this 4-week experiment so my interest earned, if I’m on track, should be $75.


We are using Pancake Swap, the biggest lending platform on the Binance Smart Chain (BSC). On BSC, we are working with 3 different assets:

  1. BNB, the Binance token
  2. CAKE, the Pancake Swap native token
  3. SWINGBY, a small-cap cross-chain payment token

The nature of AMM (automated market maker) platforms is that we need to lend 2 assets at once. The liquidity pools are always 2 assets of equal USD value and we have 2 pools.

We are using the CAKE-BNB pool and the SWINGBY-BNB pool. Let’s see how we are doing.

The Update: Dollars and Bits

Both pools will give me CAKE token so the CAKE price is important. When I started the CAKE price was $13.44 and now the price is $10.27. This is a decline of 23.5%. 

There’s no way this CANNOT affect my returns. Let’s see how much.

The CAKE pool has earned me 1.033 CAKE.

The SWINGBY pool has earned me 2.097 CAKE.

This leaves us with 1.033+2.097= 3.13 CAKE. The 3.13 CAKE x CAKE price of $10.27 equals $32.14 interest earned in the form of CAKE. 

$32.14 (Interest)/$500 (Amount Invested)= 6.42%

To stay on track, I should be at $75 or ¾ of my goal but you can see I’m well short of it. At CAKE’s original price of $13.64, I would still be short as yields have come down since I invested.

Now 6.42% is a great 3 week ROI but it’s less than the original goal of 20%. Let’s see what happens at the end of the month.

About the author

Stu Stu Lustman, the author of this post, is a Credit Analyst by trade trying to bring Commercial Credit Analysis techniques to the world of Peer to Peer Lending. Check me out on Twitter, LinkedIn and Google+

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