Measured: The principal of $2,000, is the daily interest enough to eat old wheat?

That's right, just leave the principal of US$2,000 untouched, which is about 16,000 Hong Kong dollars, or about 50,000 Taiwan dollars.

LikeCoin's "yield farming" on the Osmosis decentralized exchange claims an annualized return of more than 100%, which is almost impossible from the perspective of investment tools in the traditional world. However, although this DeFi tool is new, it has been popular for a long time. For example, Ethereum can provide liquidity in currencies such as ETH/stETH in curve.fi to earn CRV and LIDO tokens. In the SOL ecosystem The system has the Raydium service to provide the liquidity of the SOL system to earn RAY tokens, and these tokens can be easily exchanged into USD stablecoins with services such as uniswap.

However, LikeCoin has also stepped into this DeFi stage, just like the girl next door singing in front of the screen all day, the shock to ordinary users is different. Many users of LikeCoin are creators or readers who are not technically savvy. It is only when the LikeCoin earned in the "Turn Appreciation into Reward" activity is sold into fiat currency that it is doubtful that they can earn a return of more than 7% by entrusting LikeCoin.

100% annualized return? ! Too exaggerated, is that a scam?

Is it a scam?

Liquidity mining, although risky, is by no means a scam.

Community members have written a lot of good articles about the principles of liquidity mining, so I won’t repeat them. Today, I want to actually test how "real" I can earn with this method. To do this, I set up a $2000 portfolio experiment:

• Assuming 100% annualized return, single interest calculation;
• One-year interest income = principal x interest rate x period = USD 2000 x 100% = USD 2000;
• One day's interest income = USD 2000 / 365 days = USD 5.479 = HKD 42.63, which is about enough for me to eat a McDonald's meal worth HKD 40;
• Since Osmosis distributes $OSMO rewards every night at 1:00 a.m., theoretically, I should be able to withdraw this money every day to help with my living;
• To convert this $OSMO coin into Hong Kong dollars for consumption, the method I choose is to recharge the credit card, and then swipe the card to buy food

The experiment is designed and put into practice to see how it turns out.

Establish LIKE/OSMO liquidity pool

The method of establishing a LikeCoin liquidity pool in Osmosis has been introduced by many masters , so I won't repeat it.

My experiment is: put in $LIKE equivalent to about $2000, convert half of it into $OSMO, build a liquidity pool in Osmosis, and bind it for seven days, expecting to get the 177% annualized return shown at that time. If the data shown is true, the $OSMS I will receive that night is roughly equal to (2000 x 177%) / 365 / 5.5 = 1.76 $OSMO ($OSMS/USD at the time was 1:5.5).

To keep the math and numbers simple:

• I opened another wallet to store the funds
• No other fund pools will be built except OSMO/LIKE
• The $OSMO obtained is not immediately invested in the fund pool to earn compound interest

The tense time has come. At 1 p.m., I opened my sleepy eyes, opened my Keplr wallet, and found that the return of the day had been issued. The actual amount was 1.89 $OSMO coins, which were directly deposited into the wallet without any withdrawal procedures. It was similar to the formula.

Convert $OSMO to $CRO

I have applied for a Crypto.com credit card a long time ago. The native token of this card, $CRO, is also listed on the Osmosis exchange and can be directly exchanged for $OSMO. To recharge, I exchanged 1.89 $OSMO to $CRO at Osmosis.

The redeemed $CRO can be transferred to your Keplr wallet with the withdraw function on the Osmosis “Asset” page.

Transfer $CRO to Crypto.com

After depositing $CRO to the Keplr wallet, click "Send" to send it to the Crypto.com credit card. The method is to open the Crypto.com app , select "Accounts" -> "Crypto wallets" -> "Crypto.com coin" -> " Transfer” -> “Deposit”, copy and paste the address and “Memo” fields to the corresponding fields on the recipient page of the Keplr wallet.

To be honest, Crypto.com requires users to click five clicks to copy an address, which is very inconvenient for ordinary users. There is great room for improvement in UX, but it is true that it can be used.

Top up your credit card with $CRO

The transaction record of $CRO to the account of the Crypto.com credit card can be found at the bottom of the Crypto.com app “Acccount” -> “Crypto wallet” -> “Crypto.com coin” page. Under normal circumstances, it will be instantly credited to the account.

The strange thing is that Crypto.com can't recharge with its own company's native currency. It has to be converted into other currencies such as USDC before recharging. Do you want to make more money in the exchange process? ! Well, first go to "Account" -> "Crypto.com Coin" -> "Sell CRO" in the app, exchange $CRO into the USD stable currency $USDC, and the result is 9.819182 $USDC.

$USDC is a cryptocurrency that is pegged 1-to-1 with the US dollar. At this point, it is almost confirmed that the money obtained from LikeCoin liquidity mining can be used to buy food! But a technical novice like me doesn't feel the touch of a hot hamburger in my hand, and I don't believe in those "virtual" things, just like Mr. Shi questioned that Bitcoin can't buy wonton noodles. So let's move on to the next step, top up Crypto.com credit card with this $9.819182. Go to "Card" -> "Top up" -> "USD Coin" in the app, adjust the top-up amount to the nearest value of 9.819182 USDC, which is 13.11 SGD – the legal currency unit of this card is Singapore dollars.

The last step: buy a Mai Kee package!

last step. Although I don't eat Mak Kee often, it is the only restaurant nearby that accepts credit cards and is convenient for demos. As a result, I used the $13.11 SGD in my Crypto.com credit card to buy a mushroom Angus set meal worth HK$44, and I didn't spend it all. The interest of $OSMO is still about 36 Hong Kong dollars a day, which is a little less than enough to buy two copies of <meta charset="utf-8">Mushroom Angus.

But in fact, what I most want to eat with this money is Heli Fish Ball Noodles, but unfortunately they don’t accept credit cards; I hope that one day they will accept LikeCoins, which is actually more convenient; I just don’t want to pay, because the comparison will definitely be due to The Hong Kong dollar that has been depreciated by currency exchange, LikeCoin seems to be more valuable.

Let me introduce another way to convert $OSMO into fiat currency: first convert $OSMO to $ATOM at Osmosis, and then transfer $ATOM to the centralized exchange for cash out. Since many exchanges support $ATOM and transactions are active, the exchange is also convenient.

However, since $OSMO can be exchanged for fiat currency, what does it really matter if you spend it directly with a credit card? As long as it is a real form of value storage, it can be redeemed at any time with sufficient liquidity. People who don't believe in cryptocurrency think it's "fake" because they lack the knowledge needed to use it.

Liquidity mining is an investment method. Of course, there are risks associated with it, such as currency price decline or "impermanent loss". I won't talk about it in this article. There are many detailed information on the Internet. Please refer to the related article on Matters or Google it yourself.

Attached is the process of buying old wheat with Crypto.com VISA card. If this article finally convinces you that cryptocurrencies are "real money", please give me a big clap in the applause button below and I will earn LikeCoin for it.