Baked Cats Update — 15% a Day Rolling In

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  1. But there have been a couple of changes to the tokenomics.
  2. So how am I doing?
  3. Final Thoughts
  4. My Strategy

If you’ve read any of my previous DeFi articles you’ll know that I’m both wildly cynical and madly enthusiastic for these crazy DeFi plays with ridiculous APYs that keep popping up.

I wrote a few days ago about the most recent find, Baked Cats and asked “Is This the Craziest DeFi Contract Yet?”

Well, I still think it’s crazy, but so far it’s delivering on it’s promise and it has consistently returned 15% per day, as promised.

But there have been a couple of changes to the tokenomics.

To incentivize us to keep compounding you can earn a bonus on top of the standard daily return. Every time you compound, you get an additional 1.7% rising up to a max of 34%, if you reinvest 20 times in a row. Once you take some money out, the bonus counter resets.

Originally, the bonus was 2.5% each time, with a max of 30% for twelve compounds. So, the new formula is more generous, but it will now take a few days longer to get there.

There is also an opposing rule, to discourage us from taking money out before we have compounded a minimum of ten times. This comes as an 80% sell tax, in comparison to the normal 18%, which is still quite high for these miner programs.

So how am I doing?

Here’s my dashboard after 6 days:

So far, I’ve only Re-Baked eight times, because I keep forgetting that I should click twice a day. I’ll probably be even more forgetful now that it’s every eight hours, so I might not maximise my returns as fast as I could. But I can live with that.

I initally invested $200 and, as you can see, my current total is over $400, but that includes $47.40 of referral rewards. Thank you to those who clicked my link in the previous article.

Final Thoughts

I like that the team have put these restraints in place, to incentivize compounding and penalise large sell-offs. They may give this project some needed extra life. I also like that the TVL has consistently risen and looks to keep on going.

But what I like most of all is that Baked Cats takes BUSD in and puts BUSD out, so your returns aren’t subject to the volatility of the market like other miners linked to tokens like BNB or AVAX.

My Strategy

My plan is to take advantage of the maximum 34% bonus by compounding the full 20 times which, if I remember to click three times a day, will take me a further 4 days. Then I’ll decide whether to take my first money out, or keep going a few more days, until I can get my initial deposit back in one hit. After that it’s all profit.

Of course there are risks here like all the other miners we’ve seen. Rugs, hacks and reverse growth are all possibilities. However, listening to the dev team I’m reasonably confident that they’re not ruggers.

As for hacks, who knows? But, as long as they keep up their marketing effort we shouldn’t see a falling TVL for a while yet. So, I may well put a little more in.

If you want to check out Baked Cats and you want to use my referral link, here it is:

BakedCats/CryptoKnight

Of course DYOR and don’t take my advice, but I’m in, so you might want to throw some risk capital into the oven along with your Cats.

Would you like to see the full details of my DeFi investment portfolio, including Baked Cats? I’ve started a FREE free weekly newsletter, on Substack, called DeFiance where I share the highs, lows and in-betweens of actually putting my money where my keyboard is.

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