Yesterday, I stake some of my EGG/BUSD LP in Swamp Finance to test the performance of their vaults and was pleased by the good returns that I gained in such a short period. My base deposited has grown to 1.00865% which means I earned about 0.865% as shown on the reward details. That reward is in the form of EGG/BUSD LP token and was being compounded to my stake automatically. Passive income at its finest!
In addition, I have also earned about 0.0464% worth of Swampy tokens (the native token of Swamp Finance).
In this test, I only deposited a small amount in the vault. My goal is to have a first-hand experience with this feature since it will be a lot similar to the upcoming Kingdoms of Cub Defi.
To compare, I also made a screenshot of the EGG/BUSD LP Farm of Goose Defi. Take note, they are the same EGG/BUSD LP tokens under the Pancake V1 pool. However, the clear difference between the Swamp Finance Vault & Goose Defi LP Farm is the APR or simply the earning potential.
Swamp Finance offers = 1,918.68%
Goose Defi offers = 246.85%
Another clear difference between the two is that Swamp's Vault is auto-compounding which means, it doesn't require me to do anything after I deposit them to the vault. It simply grows by itself, fantastic! The system will take a small percentage of the profit to administer the fund & to process the auto-compounding. The admin fee is 4% of the profit only. The initial LP deposit will remain untouched by the system.
While in Goose's Farm, it will require me to manually harvest the reward and then swap half of the EGG token to BUSD, then provide liquidity to the LP, and then stake it back to Farm. It's a tedious and relatively expensive process. It might incur around $1.50+ worth of BNB tokens. IMO, it's a waste of my BNB tokens.
For my first day experience of the Vault feature, I realize the convenience that it provides especially for a small investment like mine.
It's a truly passive income!
Very Important before you invest
NFA: Not Financial Advice!
DYOR: Do Your Own Research!
IAYOR: Invest At Your Own Risk!
Loving the auto-compounding feature of Swamp Vault. Should be getting myself some eggs
It's a better option than Farm/Pools, especially for small investments.
Yeah