Adventure Token / Luna Fund Rewards Chain
A Beginner’s Explanation
The Luna Fund is a cryptocurrency mutual fund that uses some clever engineering to compound the returns of your investment.
There are several ways to earn with the Adventure Token and Luna Fund.
Luna Fund Rewards Chain
Buy It
When you purchase $TWA Adventure Token on Uniswap you are purchasing a deflationary cryptocurrency that automatically burns 1% of tokens with every transaction.
This means that when you buy, sell or send 100 tokens there will be 99 left. The supply is constantly decreasing which adds pressure to increase the price.
The Adventure Token team has committed to large scale burn events to reduce the supply even more. Simply by holding the TWA cryptocurrency you are holding an asset that can dramatically increase in value.
Pool It — Uniswap Adventure Token Liquidity Pool
Once you have $TWA Adventure Token and an equal amount of Ethereum you can add it to the Adventure Token Liquidity Pool on Uniswap. A liquidity pool is just a technical term for loaning your cryptocurrency to Uniswap for them to facilitate trading with.
The Adventure liquidity pool gets 0.3% of every TWA/ETH transaction on Uniswap in exchange for providing these funds. These fees are divided between liquidity providers and is realized in the value of your Adventure LP Token (UNI V2).
Balance It — The Luna Fund
Once you have the Adventure LP Token (UNI V2) you can add it to the Luna Fund on Balancer. The Luna Fund is made up of 5 tokens.
- Uniswap
- Chainlink
- Bitcoin
- Ethereum
- Adventure LP Token
The Luna Fund lends funds to other exchanges and traders and takes a 2% fee for every transaction.
In addition to the 2% fee you will also be awarded BAL Balancer tokens weekly on Tuesday for providing liquidity to Balancer. This is a small reward Balancer supplies for participation in their program.
Cumulative Rewards
To Recap there are 4 ways you will be rewarded for participating in the Luna Fund.
- The $TWA Token — Through a combination of deflation and demand the base asset can rise in value the same way any other cryptocurrency does. The difference is that due to the constant burning of tokens there is constant supply pressure on the price.
- The Adventure LP on Uniswap — You will earn fees equal to 0.3% of all transactions which will then be divided among the liquidity providers.
- Luna Fund Balancer Fees — You will earn fees equal to 2% of all transactions which is then divided among the liquidity providers. This is the biggest reward for the Luna Fund. All rewards up until this point are represented in the value of your position in the Luna Fund which is tied to your BPT tokens.
- Luna Fund Balancer Rewards — Each week you will receive a small amount of BAL Balancer tokens airdropped to your wallet. These are in addition to all the fees that accumulate in your liquidity position, and should be viewed as a bonus.
BAL Balancer Token
The BAL tokens that are airdropped to your wallet each Tuesday come from a pool of 145,000 BALs that Balancer divides among every investor that supplies liquidity across the whole platform. Balancer has set aside tokens to continue this for quite some time.
I cannot stress enough that the BAL tokens are simply a small reward for participating. The biggest rewards will be accumulated in the fees collected from the Luna Fund and Adventure LP Fund. BAL tokens are just the cherry on top of an already large ice cream.
An Example of How an Investor Earns
Conservative Forecast
In the example above we chose an extremely conservative estimate of statistics based on recent performance.
Our prospective investor invests $1,200 into the Luna Fund and the fund doesn’t grow much afterward. With low volume the fees are low and the price of the BPT token barely moves.
Our investor still makes a profit of $886, or 73.86%. The BALs airdropped into their wallet will be in addition to this.
Glory Forecast
Let’s assume that our marketing efforts continue to be productive and the crypto market overall sees some moderate gains.
The project enjoys moderate growth, but the token has only a minimal price increase (in reality this volume growth would increase the BPT value substantially, but to stay conservative and to illustrate the power of fee accumulation we will maintain a small price increase in our forecast).
Now the fees are substantial, making up a much larger percentage of return which is ideal.
Our ROI on a healthy Luna Fund that reaches $1 million in liquidity is an impressive 372.75%. Your $1,200 investment will grow to $5,673 after 1 year.
The BAL tokens you receive on top of this will vary, but we would expect most investors to get an additional $250-$500 over the course of a year.
Luna Fund Forecasting Tool
In the example above I used a new tool we are developing called the Luna Fund Return Forecaster. We are currently developing a browser based version for the website.
The upcoming website version of the Luna Fund Return Forecaster will be capable of pulling up to date price information from the web to automatically and accurately populate some of the input fields.
To help our early investors understand their investment we have decided to share the excel spreadsheet that was developed to design the app with the community.
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Please remember this is a temporary tool that we are sharing to answer some questions people have and help the early investors gain a better understanding of how the fund will make money.
What It Looks Like When You Cash Out
When you cash out of the Luna Fund you will be able to choose the assets from the pool that you’d like deposited in your wallet.
If You choose the Adventure LP token that you deposited (UNI V2) you will need to complete the original process in reverse and cash out of the TWA/ETH Adventure Liquidity Pool on Uniswap.
In our most conservative forecast above your original investment has increased by 73.86% your $1,200 will be $2,086. That means you will have $2,086 value in a token combination of your choice from the Luna Fund.
It doesn’t matter if you cash out in Adventure LP tokens (UNI V2) or you decide to take mixed assets (Chainlink, Uniswap, Bitcoin, Ethereum and Adventure LP). Your gains will be realized in the values of either and you can then sell and purchase back a mix of holdings that suits your needs.
Things to Remember
✅ The Adventure LP fund is a liquidity pool used to facilitate trades on Uniswap. Uniswap continually adjusts the makeup of these pools to keep the values equal. The makeup of your stake will change along with the values of each token.
✅ Balancer constantly rebalances the makeup of the Luna fund. When one asset shows an increase in price Balancer will sell some of it and purchase assets that have lost or stayed the same in price.
✅ These factors will help increase the gains of the fund when the market rises together, and it can increase the losses when the market falls.
✅ It actually helps stabilize the price of $TWA as you could see last week when the entire crypto market dumped but $TWA was relatively stable.
✅ The Luna fund contains a versatile and diverse portfolio of cryptocurrencies that generally realize gains when the entire market rises. The Luna Fund will multiply those gains in a Bull Market as it balances the holdings.
✅ Since the gas fees and trading fees are high to fully invest in the Luna Fund and since the project is designed to profit from fees collected over a longer period of time, it is advisable that investors plan on leaving their investment in the Luna Fund for longer periods of time.
✅ Someone that was lucky enough to have bought $TWA very early could have made some quick profits short term, but as the Luna Fund produces 200%+ gains year over year and those gains are compounded within the fund, long term investors will benefit considerably more.
DISCLAIMER
Trading and investing in cryptocurrencies (also called digital or virtual currencies, crypto assets, altcoins and tokens) involves substantial risk of loss and is not suitable for every investor. Any content on this article should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide when to trade our token. Trade only with risk capital; that is, trade with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance.
