Passive Income Part 1: Drip Network
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Passive Income Part 1: Drip Network
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Bought some NFTs, The SandBox 1 week Challenge runner up. y.at/🐜🍯🕸📟
We hear a lot about Defi and see a lot of Cryptocurrency investing opportunities with ridiculously high APY numbers in the thousands. Well I've decided invest some small amounts into a few with some more down to earth APR/ APY numbers. Part 1 is the Drip network.
What is Drip?
Lets take look at the explanation of what Drip is from Drip Networks own DRIP Faucet page: “The DRIP Network’s Faucet is a low-risk, high reward contract that operates similarly to a high yield certificate of deposit by paying out 1% daily return on investment up to 365%.
Players can compound and extend their earnings through deposits, hydrating (compounding) rewards as well as through team based referrals.”
Where does this 1% come from?
Whilst it's not amongst some of the massive percentages I've see, (I've seen APY claiming to be in the tens of thousands), how is this sustained? Answer, by a 10% tax on practically all transactions carried out with Drip. There are a couple of exceptions to these transactions. If you swap via Drips own swap page, rather then paying the 10% tax you would on Pancake swap, it will attract a 0% tax, and the tax to hydrate, (compound) your Drip will only be 5%. There is also a Whale Tax on large claims to keep the market stable.
Drip Strategy
Having bought my BNB and swapped it for Drip, (on Drips own page to save the initial 10% tax), I deposited almost 28 Drip, which is now locked. I can now claim my interest or Hydrate it. Claiming has the aforementioned 10% applied however hydrating, (compounding) only attracts the 5% tax. So what's my strategy? I can periodically hydrate for around 75 days or so at which point I will have doubled my Drip and I could the start claiming until I have recovered my initial deposit, this will take about 124 days to recover at which point I'm then playing with house money as it were, or I could alternate claiming and hydrating or if I'm still bullish enough I may just continue to hydrate and build up my max pay-out.
What is Max Pay-out?
No matter how much Drip you invest the max pay-out tops out out 100,000 Drip. So the aim is to stop hydrating and only claim 27,397 Drips deposited. Why 27,397? 27,397 / 100 gives us our 1% of 273.97 now times that to give us our max 365%, 273.97 * 365 = 99,999.05. Close enough. Remember what you have already claimed to hydrate is included in this number.
How its going after 2 weeks?
I've been hydrating daily and I'm now at 30 Drip deposited with 111 Drip max pay-out. Also Drip has had a run up so there's gain there, meaning I could recover my initial in monetary value 3 times faster if we remain at that price. however in the long term even if drip crashed to $1 there would still be a sizable profit if aiming for the max 100,000 Drip pay-out.
How to Drip Faucet
If any of you are contemplating aping in you'll need a buddy address to start. I'd appreciate it if you use mine. Click the link below to go straight to the faucet and click buddy detected at the bottom the get a buddy form on the lower left of the main screen or you can enter 0xab9bBAB61a9C06DC49AFF2564C56452Bc3f2be77 also read the Whitepaper for more info on how the buddy system works to increase your drip.
Step by Step instructions to get you started
1. Get some BNB, you can buy this on Binance or Coinbase or a number of other centralised exchanges and send it to your BNB address in your Metamask or another wallet. If you don't have Binanace Smart Chain on your Metamask. use the following settings under My Accounts, (thats the round icon at the top right,) -> Settings -> Add Network
- Network Name: BSC Mainnet
- New RPC URL: https://bsc-dataseed1.binance.org/ or https://bsc-dataseed2.binance.org/
- ChainID: 56, or 0x38 if 56 doesn’t work
- Symbol: BNB
- Block Explorer URL: https://bscscan.com/
2. Head over to the Drip
website 3. Under Buy Drip Enter enough BNB to buy the DRIP you want the more the better. Also, make sure to leave some BNB so, you can pay gas fees and hydrate. The gas fees are normally around $1. Approve the smart contract and exchanges in your wallet.
4. Go to the Drip Network Faucet page and enter a buddy, which as a requirement. But don't worry you can use mine, my buddy ID is 0xab9bBAB61a9C06DC49AFF2564C56452Bc3f2be77
5. Once your buddy is confirmed you are ready to deposit DRIP. Enter the amount of DRIP you want to deposit and click Deposit. Approve the transaction in your wallet 10% will be taken as a tax as discussed earlier. Also, remember that you cannot get this money back but you will make it back in interest.
5. The last thing to remember is to come back and visit the page every day and hydrate your 1% daily ROI. You can claim also but remember the longer you wait to claim the quicker the claimable amount will grow due to compound interest.
You can also go straight to the Drip Faucet from here and click detect buddy.
In Part 2 I'll be discussing staking $looks on LooksRare
Disclaimer: Nothing in this story constitutes financial advice. HackerNoon and/or their editors have not invested in the aforementioned crypto nor do we endorse investing without fully understanding the risks involved. This story was submitted by an independent contributor and has been published for educational purposes only
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