15% per Day. Is This the Craziest DeFi Contract Yet?
If you’ve read any of my other articles you’ll know that I’m partial to the odd crazy DeFi contract. The crazier, the better, in my book.
I recently wrote about the Baked Beans miner printing at 8% per day, which was pretty radical. And then I wrote about PinkApple, offering 12% and I signed that off by asking, “What next?”
Well, sure enough, someone has gone one better and come up with a miner contract returning 15% a day. Yes, that’s 15 dollars on every hundred. Every day.
Introducing Baked Cats
It launched only three days ago, on May 4th and the name seems to be some weird homage to Baked Beans and another fork called Lucky Cat. I don’t think they really care any more if the names make sense or not.
I mean, as a name for a contract, I can kind of understand Baked Beans. You can eat them. But cats? They may be considered a tasty snack in some corners of the globe, but not most. And would you bake them? Not sure.
Either way, I’m sure animal welfare might have something to say about it. But who cares if the occasional family pet gets broiled, when there’s a shedload of money to be made? It’s just collateral damage.
Once again, we’re dealing with a Baked Beans fork, and of course, Baked Beans was itself a fork of some of those chicken and egg miner contracts that flared and died back in the old days of 2021. You can tell that because when you compound your Beans, you get a message in MetaMask, saying “Hatch Eggs.” The devs missed that little detail.
Of course, the aim of each new fork is to tweak the contract in an attempt to solve the sustainability conundrum.
Carrot and Stick
Baked Beans relies on investors being good children and following the mantra of Bake 6 days and Eat on the seventh. The community spirit worked for several months, but as soon as there was a downturn in the TVL it was every Bean for himself. Most of us have been eating like crazy, trying to get to ROI before the rewards dry up.
Baked Cats takes a harder line. They say, “The hell with expecting people to be nice. We’re going to force them to toe the line.”
How? Well, they apply a clever carrot and stick approach. If you try to take your rewards before you have compounded at least ten times, they will whack you with a a 60% tax penalty. That’s the stick.
The carrot is that you can whizz through those ten re-bakes as fast as you like, but if you have a little patience and just compound twice a day, you get a handy little 2.5% bonus on top of whatever you’ve earned, each time. For example. Say you accrue $40 in rewards in any re-bake period. If you wait the full 12 hours before compounding you’ll get an extra $1 on top.
And if you compound twice more, after the mandatory 10, and make 12 re-bakes in 6 days, you’ll get 2.5% on both those last re-bakes as well, giving you a total of 30% extra across the week. That’s a pretty compelling incentive to benefit the contract and boost your bags at the same time.
You’ll notice on the image above the bonus figure is 5%. That’s because I’ve already re-baked once today and got my 2.5%, so when I compound again later, that will add to 5% , and then next time it’ll show 7.5%, and so on.
This hard-line approach looks like a pretty good way of keeping us greed-heads on the straight and narrow and it could help the contract to last longer than most but, in my opinion, they missed a trick.
Why not go the whole hog and simply disallow any withdrawals before six days, just like a time-locked stake or a fixed period bond? It’s not like we’ve never seen such things before.
If it is actually feasible to get 15% a day, plus that extra bonus, who’s going to care about a one-week lock?
The whitepaper suggests that following the 6/1 regime will get you to ROI in 6–8 weeks, but by my calculations, that’s conservative. If it truly does pay at 15% and even taking into account the whopping 18% selling tax, ROI will be reached in less than 3 weeks.
Frankly I don’t believe that for a minute, but I’ve put $200 in so I’ll let you know whether I’m on track for that, in a week’s time.
So you actually invested!!?
Sure, of course I did. I always float a little mad-money into these things. If I can ROI in three weeks, then I could be in profit by the end of the month and maybe a lot more in the following weeks.
And if not? Well, this is money that I can easily afford to lose. So, no worries.
Let me guess. You’ve got a referral link
Yes, of course I’ve got referral a link. This is it: Baked Cats Referral.
I’m going to shamelessly plug my own interests and suggest that you consider throwing some don’t-care-dollars at this crazed contract, just like I did.
Full disclosure; I’ll get a 10% kickback from your deposit, which seems like a fitting reward for the toil and trouble of penning this world-shaking article :-) But, as always, you absolutely don’t have to use my link. I’d just like it if you did.
Come on! The contract is only a couple of days old and the TVL is rising. Let’s make a few dollars while the oven is still hot and before the cats get too crispy. Just think, if nothing else, you might be able to buy a few more DRIP by the end of the month.
Of course, none of this is investment advice. You know that already. This is gambling, pure and simple.
But, Hey! Isn’t it fun?
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