How, Why, & Where I'm Earning Over 400% APR Farming Liquidity

The crypto market is bubbling up. Ethereum completed the Shapella update and surpassed $2000. And Bitcoin has nearly doubled since the beginning of the year. Meanwhile, the macroeconomic backdrop is more precarious. Large banks crushed their earnings while small banks are on government assistance. Fears of dollar dominance dwindling are floating around, and Bitcoin is the most Googled word on the internet.

Most of us in DeFi are patiently waiting for altcoins to rise from the ashes and take advantage of this new liquidity entering the crypto market. And while certain tokens have popped, the overall altcoin market hasn’t been doing anything earth-shattering…yet. I won’t try to predict when the fireworks will go off, but I want to be well-positioned in the right projects if and when this liquidity moves down the food chain.

While we wait for the altcoin markets to decide their direction firmly, I focus on accumulating more tokens in these projects. An easy way to do this is by farming liquidity. If I can provide liquidity for two assets that don’t diverge too greatly, I can earn insane rewards and limit my impermanent loss exposure.

So here’s a liquidity pool I’m earning 419% APR on in a token I want to accumulate are larger position.

Why I want to acquire more $RAM/neadRAM

I recently wrote three pieces about Ramses Exchange, $13 Million in Annualized Rewards on a Platform Valued at $2.2 Million- Part 1. Since then, the Ramses Exchange token, $RAM, has increased from $2.2 million to $3 million, a 36% weekly increase. This is a positive development, but it’s not something I’m overjoyed about. The Ramses Exchange, paired with The Ennead, can be a real income-based cash flow machine. And selling my $RAM tokens would shut off my potential residual income.

If you haven’t read my last piece, Ramses Exchange is a Solidly fork built on Arbitrum. It earns revenues from partners who bribe Ramses holders to deepen their liquidity. Additionally, instead of trade fees going to LP providers, 100% of transaction fees go to $RAM stakers who convert their $RAM into veRAM NFTs. As a result, you get a flywheel effect that benefits the platform, partners, and investors.

I outlined my preferred method on how I want to build my passive income by using the Ramses Exchange layer 2, The Ennead. The Ennead handles all of the heavy lifting required by the Ramses protocol. The Ennead handles things like voting, paying attention and understanding bribes, and any other babysitting. More importantly, I get boosted returns on my liquidity pools by depositing them on The Ennead.

In return for providing my liquidity on The Ennead, I earn boosted rewards in neadRAM. Then, I can stake my neadRAM and earn high-yielding rewards paid in ETH and more neadRAM. As I accumulate more neadRAM, my stake will continue growing, and I’ll get a nice stipend of ETH rewards flowing in. It creates a virtuous cycle where my principle will grow (assuming $RAM/neadRAM prices stay the same or increase), and I can pocket ETH.

How I’m Earning over 400% APY by staking neadRAM/weth on The Ennead

I’m bullish on $RAM, and I am bullish on ETH. neadRAM has dynamics to match the $RAM price closely. I have a nice position of neadRAM staked, but I want it to increase to maximize my residual income.

Currently, the neadRAM-wETH pool on The Ennead is paying 417% APR.

This APR is variable, and today, rewards are being paid in both $RAM and neadRAM tokens. So I am converting my $RAM tokens to more neadRAM and then staking them all on The Ennead.

While I may experience some impermanent loss if the price of neadRAM moves much quicker than ETH, I am ok with that. This is because I’m earning tremendous LP staking rewards (419% in neadRAM) and more neadRAM via my neadRAM staking (165%). So I figure this should more than make up for any impermanent loss.

Why this APY may increase more

Since The Ennead controls a large portion of the veRAM supply, the platform can strongly influence which pools earn greater rewards. Therefore, when the new vote occurs on the next epoch (tomorrow), The Ennead can cast more votes for the neadRAM-wETH pool. This will improve The Ennead platform and neadRAM price stability.

Further, as this Tweet illustrates, the Ennead team has shown their commitment to the neadRAM-wETH pool.

Key Takeaways

I’m not certain (but I hope) that the rewards for the neadRAM-wETH pool will stay elevated like this for a long time. Regardless, I am going to take advantage of the opportunity that is in front of me today.

Ramses Exchange is constantly upgrading by adding new partners, and they even announced they are transitioning to concentrated liquidity. This is important as it should increase transaction fees, earning more income for veRAM and neadRAM stakers!

If this is confusing to you, I will encourage you to visit The Ramses Exchange Telegram, https://t.me/ExchangeRamses, their Discord https://discord.com/invite/ramses or The Ennead Discord, https://discord.com/invite/tFHQBXk2X7. Another aspect I love about this project is that the patient team leaders promptly answer questions and provide insights.

Official Links: https://www.ramses.exchange/home
https://beta.ennead.farm/home

I have not been paid or sponsored to write this article. I am investing in $RAM, neadRAM, and providing liquidity via The Ennead.

^{This information should not be taken as investment advice. Digital assets like crypto and NFTs involve risk, so you should always perform due diligence before investing.}