Crypto Perfection — An experiment with MONSTA
Authored by: JR
The following article is a first hand account of an experiment I ran to show the true power of the MONSTA protocol for new and existing holders alike. This article should not be considered financial advice and each individual is advised to do their own research in order to draw their own conclusions.
On the 19th of July, I set up a test account to test out all my various theories on investing with Cake Monster and Monsta Party.
I began by investing 3.85BNB which at the time BNB was running at $269.46/BNB (~$1026.77). After the 5% tax (which is part of Cake Monsters protocol tokenomics), I had a value of $997.03 which consisted of 931, 646.09 $MONSTA tokens.
My percentage of the $CAKE and $BNB Vault (my “slice”) was 0.014658%. I immediately Baked my entire holdings. For those that don’t know, baking is basically the most epically designed staking system. It’s designed for max growth for the remainder of the cycle. Which at the time of writing this article, was currently sitting at 325 days remaining.
The base baking APY was 11%, with a boost of 289%. Keep in mind that MONSTA is deflationary and so earning a yield like this is amazing in its own. More information on the baking/staking system can be found in the Medium article here.
For myself, I will only be claiming (and therefore auto-compounding) my rewards monthly.
The Monsta Party P2E Ecosystem
I additionally spent 0.5BNB on a >2k PXP Monsta Party NFT (called MP from now on). This worked out to $134.73.
After I had purchased him, I fed him a quick snack to ensure that he was active after the previous owner/seller hadn’t fed him for a while. The cost of the snack was 0.01BNB (~ $2.69). Since my NFT was now active, I tried my hand at a quick robbery. All Gen-0 MP NFTs earn $MONSTA dividends just by holding them, but the key is keeping them active. I waited until I saw a low PXP trying to rob another Party Monsta and jumped in. Rob-a-Monsta is another addition to MP where one can describe it as a “dog eat dog” situation. In this case, active MP NFTs are able to ‘rob’ other inactive MP NFTS of their daily unclaimed PXP, and unclaimed $MONSTA rewards. Yes, this sounds confusing AF, but for me this is the most epic part of Monsta Party! It brings in all the feels as larger PXP Party Monstas are always on the hunt for large rewards, and are not scared to join in robberies to steal away from lower PXP players…again the “dog eat dog” situation. These larger PXP Party Monstas are ruthless!
With all that being said, I managed to win a robbery, claimed my rewards, and now have a holding in my wallet of 577.74 $MONSTA. The NFT I robbed had an unclaimed PXP of 50PXP and 1155.48 unclaimed $MONSTA. As part of the deflationary aspect of the protocol, 50% of the unclaimed rewards gets burned, while the other 50% gets rewarded to the winning robber! Complete details can be found in the Medium article for RAM.
Ok lets go back to the MAFFS here and current update.
On this day of writing — being the 28th of July 2022.
Current holding of:
Starting Investment: 931,646.09 $MONSTA = ~$934.03
Baking rewards: 2885.86 $MONSTA = ~$2.89
Wallet holding from RAM rewards: 577.74 $MONSTA = ~$0.58
VAULT Share: 0.014701%
MP Rewards: 2118.04 $MONSTA = ~$2,12
Current market conditions:
$CAKE price: $3.45
$BNB price: $269.89
$MONSTA price: $0.00100
Current total Vault Holdings:
My current vault % value:
$CAKE — 46.13 = $158.83
$BNB: 0.04 = $10.79
With the above in mind let’s look at some hypotheticals and costs thereof.
Since we took a community vote to lock up the $CAKE vault holdings in the PancakeSwap fixed syrup pool, we currently have an APY of 82.78%. At the time we did this lock up, we had 56 Weeks left until the end of the cycle. The PCS lock up period is 52 weeks. So, we will have maximum growth now for the remaining time and then switch over to the flexible pool which has an APY of 3.86%. With the communities majority vote, the team will transfer over the amount that’s rewarded to us over the first lock up period, to the flexible syrup pool until the end of the cycle.
From the PCS (PancakeSwap) ROI calculator, we are anticipating the $CAKE holdings to be approximately 500,000 $CAKE at the end of the lockup period. This will be distributed amongst all the holders as per their % of the vault at the end of the cycle. REMEMBER, your vault % continues going up without adding anything else into your wallet or baked/staked holdings. The more volume within the protocol, the more $MONSTA gets burned. Supply continues decreasing with every buy, sell, and transfer of $MONSTA.
Now with the $BNB vault, this is directly tied to $MONSTA volume as it is not being staked anywhere. Every buy, sell, and transfer means more BNB gets added to the vault. Volume goes up…More BNB. Supply also goes down… IMAGINE. Your % of vault holdings grows irrespective of market conditions. At the current low volume, we have already accrued 303.98 BNB. On May 21st 2022, we hit the first milestone of 100 $BNB stored in the vault. 68 days ago.
This basically means that on average, during this bear market/crypto winter, we are adding 2.98BNB to the vault per day. That being said, we have 325 days to go. Which means (if volume were to stay the same) we should theoretically add an additional 968 BNB to the vault. Meaning we’d have 1,272 BNB in the vault by the end of the cycle… Again…remaining at this current low volume is highly unlikely…but anything is possible.
OK OK OK…. I’m getting carried away again…
If nothing changes in the market. Like absolutely nothing. ALL prices stay the same… WHICH is honestly very unlikely. But hey…shit can happen.
BUT….Lets say $MONSTA, $BNB, and $CAKE price stays around the same price as what it is now…
Just over 46 weeks to go until the end of the cycle. Meaning that your baking rewards (which are currently near the bottom of the U-shape yield curve as explained in the medium). So, it’s almost impossible to try and predict the figures on this as the APY will start going up again in November.
So lets keep it the same at the current amount earned per day.
Current rewards: 2118.04 for 9 days baked = 235.33 $MONSTA per day
325 days x 235.33 = 76,482 $MONSTA earned by the end of the cycle. (This is not taking into consideration the compounding effect, so this amount will more than likely be a lot more but we’ll use it as a conservative estimate)
MONSTA PARTY REWARDS:
Let’s work on a conservative amount at 1000 $MONSTA per week in dividends. This also depends on the NFT you have and how much PXP it has, but as mentioned, I purchased a >2k PXP MP (2185PXP) and after winning a robbery (50PXP) and 1 snack (7PXP), it now has a total amount of 2,242 PXP.
Rewards are based purely on factors such as the volume of feedings, NFT Marketplace Royalties, etc. More feeding means more rewards. BUT again, lets base everything on current volume.
46 weeks remaining:
Feeding cost: 0.01 BNB x46 weeks= 0.46 BNB = ~$124.15
Gas fees: 0.000829 x46 = 0.03 BNB = ~$10.29
PXP earned: 35 PXP/week x 46 = 1,610 PXP
Feeding PXP on average for a “snack”: 7PXP x 46 = 322 PXP
By the end of the cycle my Party Monsta will have 4,174 PXP.
Currently based on statistics:
a 2k PXP Party Monsta earns on average 1,000 $MONSTA per week
a 3k PXP Party Monsta earns on average 1,700 $MONSTA per week
a 4k PXP Party Monsta earns on average 2,300 $MONSTA per week
Again, lets base this on the absolute lowest of 1,000 $MONSTA per week
1,000 $MONSTA x 46 weeks = 46,000 $MONSTA
So to put this ALL together now:
After the cycle end in 325 days you will have the following:
Initial investment amount: 931,646.09 $MONSTA
Collected Rewards: 123,059.74 $MONSTA
Cost: $134.44 to claim and feed to keep my Party Monsta active
(This excludes if you win any more robberies, also excludes crumbs, also excludes the increase in baking/staking yield curve, and also excludes increase in Monsta Party rewards for increased PXP over 46 weeks)
Vault % change in 9 days was 0.000043%. So lets use the example that if everything remains the absolute same with volume and burn rate, in 325 days my vault % will be: 0.028676%
CAKE Vault Slice: 143.38 $CAKE
BNB Vault Slice: 0.365758 $BNB
Now lets use the same current figures as if everything has stayed the same from now until the end of the cycle:
1,054,705.93 $MONSTA = ~$1054,71
Cake Vault Slice: ~$494.66
BNB Vault Slice: ~$98.71
~$352.14 (Includes initial investment cost + MP cost + MP claim/snack + 5% MONSTA tax, etc.)
NOW this is theeeeee absolute worst case scenario. One where everything stays the same as of todays current market conditions.
This equates to just under a 30% return on investment for doing the least amount of work/spending. By claiming your baking rewards monthly, by snacking your Party Monsta every Friday and claiming thereafter. This is the absolute minimum conservative ROI that I feel one could earn in 325 days.
Now imagine (conservatively):
You’d have $6,890 from a $1,295 investment.
And okes are still doubting 😉
Opinions or ideas expressed in articles published in the Cake Monster Guest Column are of the respective authors and do not represent those of the Cake Monster Team.
About Cake Monster
Cake Monster ($MONSTA) is an undertaking in sustainable Hyper-Deflationary Economics. We have developed a groundbreaking economic policy and wrapped it as a cute Meme on BNBChain. To give you some fun along the way, you’ll find On-Chain Games, Play2Earn NFTs, and other rewarding features that let you earn money in the world’s first sustainable Hyper-Deflationary Ecosystem while making the protocol work for you. We offer the best of both worlds — finance, and fun memes.
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About Monsta Party
Monsta Party Gen-0’s are a collection of 9,999 Play-2-Earn NFTs on the BNB Chain and powered by the Cake Monster DeFi protocol. Gen-1 Party Monstas take it one step further with a growing collection of arcade exclusive NFTs with unique features and benefits! Browse our verified listings on tofuNFT marketplace and add a Party Monsta to your NFT collection today!
Everything is handmade and designed with crazy love by our incredibly talented Monsta designers! What is a great Monsta Party without fresh and funky looking Monstas?!
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