Berachain BGT Retirement Challenge - Day #7
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🥸[Sub topic]: 8 Reasons Why I Believe Earning Passive Income with BGT is Feasible
You've probably heard about the strategy of holding stocks to earn passive income from dividends in the stock market. However, choosing which stocks to hold is an art. Beyond calculating EPS and P/E ratios, you need to consider holding shares of companies that are performing well and have sustainable growth potential. It's all meaningless if you hold stocks with low P/E (high earnings per share) but the company is declining, stock price plummeting, and eventually becoming worthless, causing you to lose your initial investment. 💸
Staking in crypto to earn yields is similar. Everything becomes pointless if you buy and stake tokens of a protocol initially seems to offer high yields (APR reaching 3-4 digits), but metrics like TVL, trading volume, or active user of that protocol keep declining. This leads to decreased revenue, reduced yields, and falling prices of your staked tokens, creating "double losses". More dangerously, most protocols currently implement lock-staking, requiring you to lock tokens for extended periods to earn higher yields (the longer the lock period, the higher the yields).
That's why I chose to accumulate
$BGT of
@berachain as a long-term passive income strategy. Because it meets these safety criteria:
1⃣You don't need to buy it - you can farm BGT for free by providing liquidity on Berachain.
2⃣BGT holders earn a share of profits from core protocols running on Berachain. For example with BeraDEX, 50% of profits are shared with BGT holders.
3⃣Instead of participating in lock-staking with a single protocol, you can simultaneously earn yields from all core protocols on Berachain, including BeraDEX,
@KodiakFi ,
@Dolomite_io @WeberaFinance and other "heavyweight" protocols that will appear in the future. I believe the Bera ecosystem will develop sustainably, and staking BGT earlier will be advantageous.
4⃣When the market declines and you want to withdraw capital, you just need to swap
$BGT to
$BERA at a 1:1 ratio and sell BERA on exchanges.
5⃣Furthermore, I use
@VemoNetwork NFT Account to unlock BGT, turning it into a transferable asset that can be traded on the secondary market while preserving the original benefits of BGT tokens. → Selling BGT will fetch a higher price than selling BERA, because BGT gets an additional "premium" due to its yield-earning capability, while BERA doesn't. Check out the premium of liquid wrapper BGT here:
x.com/bgtpremium
Regarding Berachain's long-term growth prospects (leading to BERA & BGT price appreciation and yield increases), I'm betting on:
6⃣According to DefiLlama, in about a month since mainnet launch (from Feb 9 until now), TVL on Berachain has grown strongly from 700 million to 3 billion USD, along with growth in trading volume and fees:
defillama.com/chain/Berachai…
7⃣Currently, BGT only earns yields from 50% of BeraDEX revenue. But soon, when giants like Kodiak, Dolomite and other protocols join the POL game and share revenue with BGT, what then? Just by holding BGT, you can benefit from all their success without breaking a sweat =)))
8⃣Additionally, when the bribe mechanism kicks in and creates a BGT war across the chain, BGT will become the most sought-after asset by protocols and users, and you'll already have a significant amount of BGT in hand.
Above is the sub-topic about why I believe earning yields with BGT (and potentially even retiring from this plan) is entirely feasible.
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Update about my account
You must have seen how both the stock and crypto markets were "massacred" last Monday. But BGT accumulation plan for earning yields is a brainless strategy, as it's not significantly affected by short-term market conditions. After 7 days of this journey, I have accumulated:
☘️2.81 BGT (equivalent to about $17 at current market price).
☘️Earned $0.13 in yields
☘️Average APR around 89.63%/year
Track my Vemo NFT Account performance here:
👉On OpenSea (BGT balance updated in real-time in the image):
opensea.io/assets/bera_chain…**
👉On Debank:
debank.com/profile/0xf3d7ff8…
👉Detailed data in Google Sheets:
docs.google.com/spreadsheets…
👉Use Vemo NFT Account to unlock locked assets like BGT here (completely free and safe):
app.vemo.network/account
Tagging some Bera dudes for Visibility
@SmokeyTheBera @ellaqiang9 @Milk_Trudge @captainjack @Neoo_Nav @0xjoekid @danielbuild02 @hoangtheduc1234 @0xfarmed @marginxyz @lordjorx