1k to 100k in 1 year

1k to 100k in 1 year equates to an APR of 463.5% or an APY of 9907% (daily compounding). So a daily APR of 1.27% is the magic number. Can I average a daily increase of my portfolio of 1.27% for an entire year? In short, yes I believe it’s achievable. There are multiple avenues one could take to achieve this goal. Whether it’s investing in blue chips (>$2 billion market cap), investing in crypto trends (such as metaverse/gaming or Layer 2 scaling solutions), participating in IDOs/ICOs to find those 10x gems, or by navigating the lucrative minefield that is decentralized finance, to name a few.

My strategy will be high-risk high-reward with initial profitability (I hope) stemming from DeFi to bolster my portfolio before looking to projects/protocols/blockchains/tokens with strong ‘fundamentals’ for more sustainable growth. The strategy could be likened to a trickle-down system in which high-risk protocols generate a yield that is both reinvested and invested into a lower risk protocol, the yield of which is again then shared between reinvestment and investment in the next lower risk play, and so on and so forth. The idea behind this format is to quickly diversify, thereby spreading risk, and to quickly gain exposure to cryptos (and projects within their ecosystem)I believe will have a strong 2022. Again this is highly risky and the decisions I’ll make over the next year (if I make it that far of course) will be based on opinion and should not be taken as financial advice. Participating in DeFi could be likened to gambling. Yes, many of the ‘bets’ we make are asymmetric in nature, with an enormous potential upside much greater than its potential downside. However they are bets nonetheless and we should consider ourselves as gamblers not as investors when participating in DeFi. More often than not we are gambling on the competence and trustworthiness of the people (usually anonymous) behind these DeFi projects. As one of the fundamental properties of blockchain technology is trustlessness, the requirement to put your trust in the hands of anonymous strangers is a massive barrier to DeFi participation and will likely continue to be for the foreseeable future as hacks/exploits/rug pulls inevitably increase in 2022.

Now there is an elephant in the room to address. What about the upcoming bear cycle? Some could argue that we’re already in one. Currently down 35% from the all-time-high of $69,000 with only sideways movement for the last month. Many predict a further correction coming anywhere between the end of this month and June/July. Some argue that we’ve decoupled from the bull-bear market cycles all together. My point is no one knows, and anyone claiming to know is either in denial or just lying to you. I’m of the opinion that if a bear market does arrive, it won’t be anywhere near as severe or as prolonged as previous cycles. Again, that’s just my opinion. This unknown factor is a major reason why my strategy is so aggressive. In the event the bear does arrive in full force, I want to be as close to the target as possible and to be able to quickly exit and rotate into stables without taking too much of a hit.

That being said, my first investment will be the full $1000 into Charge DeFi. Charge DeFi is a Tomb Finance fork on the Binance Smart Chain. Like Tomb Finance, Charge DeFi is a multi-token protocol that consists of three tokens:

$Static

$Charge

$Pulse

$Static is an algorithmic token pegged to the dollar (or to BUSD to be precise). It achieves this peg via seigniorage, as per the traditional mechanism used in Tomb Finance, and a innovative rebase mechanic (Charge DeFi was either the first or one of the first to implement this novel guardrail). If you’d like to know how these mechanisms function to keep $Static at or above peg, then I will refer you to their documentation. I have already been staking within this protocol for the last three weeks, in which time I’ve been thoroughly impressed with the yield (currently 4–5% daily, yes you read that right) and the team. The protocol suffered from an exploit early on in which one of the vaults was compromised. Not only did the team fully compensate all those affected, the compensation process was calculated and drawn-out to circumvent further damage to the protocol. They even warned the teams of other protocols exhibiting the same potential exploit -a nice gesture. So in my opinion, the rug pull risk is minimal. And having already suffered from an attack I would expect a heightened sense of security. The Certik audit is also reassuring. Not financial advice though of course. The protocol has so far proven robust having promptly recovered from the hack, and the seigniorage and rebase mechanisms have proved effective in bringing $Static back above peg on multiple occasions. As mentioned before, I intend on reinvesting half the yield back into the protocol and the other half into the next protocol. Once I’ve recovered the full $1000 (i.e. invested $1000 into the next protocol), whatever is left in the protocol will essentially be ‘house money’. Depending on the health and yield of the protocol, I will reassess my investment and whether I want to further diversify. I will provide weekly excel updates on twitter and monthly recaps will be published on Medium.

Here’s my first investment:

Faith is taking the first step even when you don’t see the whole staircase- Martin Luther King Jr.