MAM — How to play it. My game plan!
Hello, my name is Nelson, join me as I talk about my strategy for MAM.
In my last article about MAM: MAM — Best entry point…
I talked about how the TVL at around 6K was one of the best entry points possible, this was on December 18th, and today February 13th the TVL continues to be around 6K meaning that you got in around Dec. 18th, and played the game the right way, your earning would have been pretty much stable over the last 2 months.
But what is the best way to play a miner?
There are a couple of things we will wanna pay attention to when setting a strat to face a miner.
TVL — The contact TVL is the main factor in determining the miner’s price.
Mechanics — The miner’s mechanics are important to determine how we will proceed.
DO NOT BE GREEDY — We need to remember that MAM is a miner which is continuously fed by outside income, this means that the miner’s life span can be extremely extended.
The initial deposit sets the pace — Contrary to what many believe in a miner the only way to increase your position is to inject more capital as the TVL goes down.
Compound and reinvestments are only effective up to a certain point when fighting inflation in a miner.
What is my game plan for MAM?
I got into MAM with 250 BUSD when the TVL was around 15K, since then I have been compounding one day and claiming the other, while the TVL was going down.
This made my daily drop down from around 10 busd day to around 2 BUSD per day, without compounding my rewards would be less than 1 BUSD daily with the current TVL of 5 to 6K.
Today I invested 1000BUSD in MAM, my current rewards are around 35BUSD per day.
From this moment there are 2 objectives:
While the TVL remains around 5 to 6K my rewards will fluctuate from 28 to 40 BUSD per day, I will continue to compound one day and claim the next. After 4 days I should have some 55 to 65 BUSD claimed and my rewards should have dropped to around 28 or 26 BUSD per day, I will use 50 BUSD and reinvest, this will leave me some 5 to 10 BUSD to work on my ROI but my rewards will go back to around 30 to 35 BUSD (depending on the TVL).
If the TVL rises to around 10 to 12K my rewards will be around 50 to 55 BUSD per day with this system, meaning that from that moment on, and while the TVL remains at those levels I can claim daily which will give me more than the 50 I need to reinvest daily and keep the excess to work on ROI/Profits.
If the TVL drops below 5 to 6K I will add more fresh capital in MAM as I know it is a matter of time to see the TVL back at around 5 to 6K and by adding more fresh capital in, once that happens my daily will be around or over the 50 I need to make daily reinvestments.
The “Key” in MAM is to have a daily over the minimum 50BUSD and not to be greedy, but rather patient.
Let’s suppose you are earning daily 50 BUSD and you are claiming every day, let’s say the TVL remains the same 5 to 6K over 5 months, and you are claiming every day.
The first claim is 50BUSD, and with each new claim let’s imagine your daily drops 10% over the previous day, meaning on day 2 your daily is 45 BUSD, and so on until day 30 your daily is down to around 2.35BUSD per day.
Over that month your claims total around 478 BUSD.
Over the second month, you start compounding one day and claiming the next your rewards drop around 5% per day instead of 10%, you reach the end of the second month earning 0.53BUSD per day.
Now let’s imagine you are earning 65 BUSD per day. you claim every day and reinvest 50BUSD every day, you are recovering the self-inflicted inflation by over 90%. Why?
You sell miner (claim) you lower the TVL, causing overall inflation for all players in the miner, the price per miner goes down, and you reinvest you are buying miners at a lower price, this will result in your inflation is only around 1%. Remember that for this exercise we are not counting the inflation caused by other players, in a perfect scenario everyone plays the game the right way.
At the end of the first month, you have claimed 315BUSD, some 163 BUSD less than if you claimed every day. At the end of the second month, your daily should be around 50 daily still, some 50BUSD more than if you claim one day compound the other as seen in the first example, here depending on the TVL going up you can be earning the same 65 or even more or around 35/40 BUSD per day if the TVL goes down to around 3 to 4K. Nevertheless, you will continue to earn a decent daily as opposed to those that only claimed or that did claim/compound only strat.
Neither compound nor reinvest will increase your position if the TVL does not increase, the only viable way to increase your position is to inject fresh capital (more than you are claiming) when the TVL goes down.
The % and amounts used in to simulate both scenarios are to be taken as an example only as in a miner the inflation caused by other player’s actions is impossible to predict and the actual values can be completely diffetent.
To sum up, the way I will be playing MAM is to increase my position in it when the TVL is lower to a point my daily is over the minimum deposit and then claim and reinvest 50BUSD daily to secure and maintain my position in MAM.
There are2 things I know for a fact about MAM.
MAM will be around for a very long time and 5 to 10BUSD pocket per day over several months equals a huge sum of BUSD.
The TVL will always eventually rise again due to the injections from the forever pools…
To finish I will like to talk about the Degen NFTs
The Degen farmer NFT is getting a new look.
In case you don’t know about them please read my previous article on them Degen Farmer — must have!
These NFTs are the Key to a powerful portfolio tracker tool that among others allows you to set alarms so you don’t miss a claim or compound…
The new NFTs are close to being complete, a funny 10K different NFT that will be key in the Mischief ecosystem in the future.
Hope you find this strat useful when playing a miner, will see you in the next article to show you the results in MAM…
USEFUL LINKS
>>MAM SITE<<
>>MISCHIEF TG CHANNEL<<
>>RICHIE YT CHANNEL<<
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