Hot Garbage Coins Corner #1 + Free Crypto!
Welcome to a likely short lived series on the garbage coins to be found on Raydium Ecosystem Farms and my interactions with them.
Each week I'll update on my degeneracy across the wilds of Raydium Farms and exactly how much money I've lost so far.
I'll also be giving away some of these tokens of broken dreams in the comments.
Intro to the wilds of Raydium Farms
Raydium is a defi protocol that acts as both DEX and a liquidity provider on Solana. To find out more about it, check out @Saitama's article on BULB https://www.bulbapp.io/p/3f481c14-65dc-4531-a879-c0b4f53442fa/introducing-raydium-igniting-the-future-of-decentralized-finaqnce
What stands out about Raydium is the ability for anyone to set up Pools/Farms. This has led to a very long tail of absolute garbage tokens.
They are nearly always unlisted (e.g., they haven't been listed on DEXs, including Raydium) and often able to have thousands to millions of tokens purchased for well under $1.
I find them a very cheap and very good way to learn about the ways in which you can lose money in defi.
Find them at https://raydium.io/farms/?tab=Ecosystem
WARNING: You WILL lose money playing around with these. Don't put in more than $5 total. That's across all tokens, not per token. Consider it a very cheap lesson.
If you're a bit of a degen then it is a lot of fun too.
NOTE: There is a very small chance that, in this process, we do stumble upon a legit project (e.g. not "hot garbage). In that unlikely event we will clearly distinguish between the hot garbage and it.
This week's trek through worthless tokens and unsustainable yields
We'll look at what has happened since we last checked in and what new degeneracy we're going to embark on this week.
As a rule we'll look at the last 7 days unless otherwise flagged.
The worthless past
How much did we lose?
NOTE: I wasn't tracking till this week so I don't know exactly but I figure I'm down about 30% on both these (and that's before you factor in I'm giving a bunch away).
NFL-USDC
A recurring theme you'll see is people making really dumb attempts to pass their token off as something official. $NFL is a classic example.
What drove the yields here was the massive amount of $NFL rewards the farm was distributing to stakers. Now these have ended and we're left with a pool of mostly regrets.
There is data on CoinMarketCap about the LP https://coinmarketcap.com/dexscan/solana/7JEAFP6AEq238YnHGcNeyxxW8cEQEGX7dzuYWJwax1E5/
You can see there was a burst of trading when this first launched and some more activity when the liquidity incentives kicked in. But the price pretty much cratered after that.
Once we've unstaked from the Farm, we navigate to the Pools and remove our position from there.
Now if I try to cash out my just over 600K $NFL (grand total 0.27 $USDC!) I'm going to move the token price by almost 3%.
I'm a $NFL whale to be sure.
So I'll swapped for half instead and moved the price 1.38%.
That leaves me with 303,925 $NFL. I've sent 100K to my Solcial wallet for prizes and the rest is on BULB for prizes.
NIO-USDC
Billed as a "gaming" token $NIO is particularly inflationary. Rewards on the Farm ran for pretty much the same time as $NFL (maybe the same people).
We have data on the LP at CoinMarketCap https://coinmarketcap.com/dexscan/solana/8SkB2fkwLeRBtgVvXatdzJGG2fAqzcSN4ik8xczdjg4f/
I came to this pretty late, after the initial flurry of activity on the token. It looks as though the farming rewards didn't do much for volume though.
We'll unstake our position in the farm and navigate to the Pools and remove our position there.
Wowsers I am a $NIO whale! 6,901,570,271,404 is my total holding.
I would move the token price by over 10% swapping that for just 0.71 $USDC.
So instead I moved it by over 5% swapping for half.
That leaves me with 3,450,785,135,702 $NIO. I've sent 1,000,000,000,000 to Solcial for prizes and the rest is on BULB for prizes.
The worthless future
Each week we'll look to the farms to see the highest and most unsustainable yields to learn more about how APR/APY works and how to navigate the different types of yield: Real & Incentivised.
CULT-USDC
I wonder if this is trying to leverage the CultDAO name? It's not been a prominent project for a while now so maybe it's just the name itself they're going after. Cult catches the eye and for garbage like this you only need a few people silly enough to degen into it (like me!).
Rewards are still running for another few days. So we'll see where we are then.
If we check on the underlying Pool, we can see there isn't much in the way of fees. This yield is all coming from incentives. Which will run out soon...
This one doesn't have any CoinMarketCap data I could find. Hopefully it'll have some when we check back in.
BOOST-USDC
$BOOST is another high inflationary token like $NIO. Definitely I'll be a whale (again) by the end of the rewards period.
Now this is interesting. There is very little as goes the TVL but it's an extremely low liquidity pool so the few stakers who are here are seeing a lot of fees per LP. This happens in crypto more than you think. Plus there's incentives in the farm.
The liquidity is crazy low so the risk is through the roof (so of course we've staked!)
There's some LP data on CoinMarketCap
https://coinmarketcap.com/dexscan/solana/4qjzjZZnzmwNP4JV3cKeJkKun8D732EzV8Ah3gXfCmNm/
Again it looks to be the same old story. We have a burst of initial activity when the token first launches but then the price craters, and even though we see more activity around liquidity rewards it hasn't really moved the price.
The slippage on this is $NIO territory. Just 1 $USDC will impact price nearly 20%!
So we're not "investing" much here.
F1-SOL
As we saw with $NFL, $F1 is clearly trying to fool someone into thinking this is an actual Formula One affiliated token.
Rewards in the farm have a few more days to run still.
As we can see from the Pool, the yield is all incentive, not much in the way of actual fees.
The CoinMarketCap data https://coinmarketcap.com/dexscan/solana/6etsJi5tUQGfg66sVwEruUY3SHt78LY5cMqKV4h1QNaH/ shows a story we're now familiar with. Early volume on launch, then a drop off, and we see some returning volume connected to the incentives in the farm.
8BIT-USDC
Only a couple more days of incentives to run on $8BIT. Another one like $CULT trying to leverage a familiar name.
There is a reasonable amount of volume here though (for a garbage coin). The majority of the yield is farm incentives though.
CoinMarketCap is showing us data https://coinmarketcap.com/dexscan/solana/D7Gd2tS2Droph54cRu8yqvmicDmLBokxgzLmaGLPyJoj/
That is a different story. Looks like this has sustained volume here (relative to other garbage coins).
LTX-SOL
Another interesting token. $LTX has a lot of liquidity right now. This kind of liquidity is what we'd expect from well known pairs.
Rewards in the farm are running for a few more weeks still.
But that yield is nearly entirely incentivised as the Pool is not seeing a lot of fees.
CoinMarketCap is telling us this has been around for a while too.
https://coinmarketcap.com/dexscan/solana/CuA6Yvcia2CZJfetLi9NwJeohx8XFYKuGLNQicZhuEGq/. Another interesting one as we've not seen the drop off in price as we've seen previously and it seems volume is consistent (if low).
Free crypto!
Here's the bit you've all been waiting for: Free stuff!
This week we have to give away the following broken dreams:
- 203,925 $NFL
- 2,450,785,135,702 $NIO
2 x 101,962 $NFL prizes
Post in the comments your favourite sports based web3/crypto project.
Extra points for including links and detailed explanations (feel free to thread if you need).
There's no limit to how many entries you can have so go nuts.
4 x 612,696,283,925 $NIO prizes
Post in the comments your favourite web3/crypto gaming project.
Extra points for including links and detailed explanations (feel free to thread if you need).
There's no limit to how many entries you can have so go nuts.
