How Smart Investors Master The Bear Market With Stablecoin Nodes!
Stablecoin Nodes are one of the hottest investment opportunities in decentralized finance right now. This article will provide all details you have to know about stablecoin nodes: How they work, how to invest, and why they are the perfect bear market investment!
About Fairy Finance
Fairy Finance is one of the most promising and sustainable projects launched recently on the CRONOS network. The project is a so-called “multi-token project” containing three tokens: UNICORN, which is pegged 1:1 to CRO (the main token of the CRONOS network), WINGS, and MAGICBOND.
Fairy Finance launched beginning of August and offered a wide range of services and possibilities to invest in. Today, Fairy Finance is a complete ecosystem with staking, yield farming, nodes, tons of additional features, and a rapidly growing community.
Nodes? What is it about?
Let us start with the basics and explain what a node is. Nodes are a specific form of crypto staking and relatively simple crypto investment. To buy a node, you must acquire a pre-set amount of tokens. In the example below, a Node consists of 50 UNICORN tokens.
Once you buy a Node, the spent tokens are locked and can’t be withdrawn. This is probably the most significant difference between common staking or yield farming, where you retain ownership of those tokens while they earn you returns.
Accordingly, you need a certain initial investment and bear the risk of losing that. But here’s the upside: Once you buy one or more nodes, you begin earning immediately. Depending on the ROI and compounding strategy, you need 2–3 months to get your initial investment back. Afterward, it’s all profit.
How much can you earn with Nodes?
The return of Nodes is usually stated as daily APR. Common nodes generate a daily APR of 1% — 3%. However, the actual value depends on many factors. As shown in the screenshot above, the UNICORN Node currently generates 1.5% daily. Moreover, important to mention that nodes are usually capped in terms of return! At Fairy Finance, the overall ROI is capped at 500%.
Single vs. LP Nodes
When searching the crypto space, you will find tons of nodes. At Fairy Finance, we offer two different types of nodes:
- Single Nodes contain only one token — UNICORN, for example. Therefore, to buy nodes, you must have the respective token and the required amount.
- LP Nodes are based on liquidity pools. Liquidity pools are usually built of two tokens, for example, UNICORN/CRO. You can build liquidity pools at every decentralized exchange, such as mm. finance.
Stablecoin Nodes and how they help to master the bear market
Alright, since you know how nodes work and how much you can earn, it gets time to talk about stablecoin nodes. A couple of days ago, we introduced the first stablecoin LP node at Fairy Finance: UNICORN / DAI. DAI is a stablecoin that is pegged to the U.S. dollar.
Bear Market Killer #1 — Highest APR
As you can see in the screenshot above, the nodes generate a daily APR of almost 2.4% at the moment. That alone is already a fantastic aspect. However, the stablecoin is the icing on the cake.
Remember, to create a node, you have to build a liquidity pool. In this case, you need UNICORN tokens and DAI tokens. Subsequently, the daily rewards you receive are paid in the same liquidity pool: UNICORN/DAI. That means you receive a daily APR of almost 2.4% for a stablecoin! That’s nearly 900% annually — for a stablecoin!
You’ll probably find no other investment that pays such high returns for stablecoins.
Bear Market Killer #2 — Reduced Risk
Besides the high APR, you will also reduce your overall investment risk when investing in a stablecoin LP. Of course, the value of UNICORN can change rapidly—to the up but also the downside. No one knows where the bear market leads us. However, at the same time, DAI represents a much more stable and secure investment. Even if UNICORN loses value, you still earn stable DAI tokens.
This article is no financial advice! Please do your research before investing in Fairy Finance.