UNI One Coin Dual Mining Guide: Calculation of Real Profit + Free Loss, How to Get the Highest APY?

Reposted from: Xiongxionghui PLUS

The first phase of UNI mining has begun, and the current TVL is approximately 710 million UNI.

Just as Mooniswap can dual-mine BZRX and AKRO, UNI can also implement an LP to obtain double rewards of transaction fees and two tokens.

NEO's upcoming Flamingo supports dual mining of FLM while mining UNI, and more Defis are expected to support dual mining in the future.

Which one should I mine? What is the risk-return ratio? Is the impermanent loss high? Xiong Xiong will show you how to calculate it.

Contents of this article

1. UNI’s benefits and risks

(1) There are two benefits of mining UNI (2) How much is the uncompensated loss (3) The current APY

2. UNI dual mining FLM

(1) Flamingo launched by NEO (2) How to mine Flamingo (3) Flamingo dual mining UNI

3. How to achieve maximum APY?

(1) BSC mining for 4 days, earn 600% APY (2) Go for the cold, not the hot (3) Suggestions

1. UNI’s benefits and risks

(1) Mining UNI itself has two benefits

For Uniswap-like DEXs, including Curve, Balancer, Mooiswap, etc., their mining rewards consist of two parts: one is the handling fee, and the other is the token reward.

Especially for Uniswap, whose trading volume exceeds that of CEX, the transaction fee reward will not be much lower than the token reward.

For example, on July 29, the pure transaction fee APY of the two types of U on Uniswap was ≈ 30%.

Moreover, Uniswap's transaction fee rewards will go directly into the liquidity you create, which means that the liquidity you provide has increased, which represents an appreciation of the LP of your liquidity.

For example, if you deposited 1 Bitcoin and 30 Ethereum, you would get 0.1 LP.

When you withdraw it, you can withdraw 1.01 Bitcoin and 30.3 Ethereum, and your LP has appreciated at this time.

There is also a little trick. If you don’t have much liquidity deposited, it may be more cost-effective to sell the LP directly, which can help you convert it into a currency easily and conveniently. Currently, 1inch supports mainstream LP transactions on Uniswap.

(2) How much is the gratuitous loss?

To put it simply, gratuitous loss means that you have been arbitraged by robots. This usually happens when the pool is small, the slippage is high, there is no oracle, or the oracle fails.

Now UNI is mined, and the TVL has reached 710 million UNI. Although no oracle has been introduced, this TVL is unlikely to cause any so-called "uncompensated loss".

The loss that Laotie is worried about should be called "paid loss", which is the loss caused by the decline in currency prices.

According to the AMM constant product formula, A×B=constant value (constant value=the product of the number of two currencies deposited at that time).

Deposit Ethereum/U,

If Ethereum falls, your U will be automatically exchanged for more Ethereum; if Ethereum rises, your Ethereum will be automatically exchanged for more U.

In short, it is a bit like "grid quantization". If Ethereum rises, you sell part of it. If Ethereum falls, you lose less.

Therefore, according to the current trading pairs supported by UNI, Ethereum/stablecoin, Bitcoin/Ethereum, you don’t need to consider "free losses", you only need to consider whether to hold Ethereum for a long time and whether you can accept Ethereum selling or falling.

(3) Current APY

As shown in the table,

First, the transaction volume determines the APY of renewal. Second, the price of UNI determines the APY of token rewards. Third, the sum of the two parts is converted into U, the final APY that can be received. Fourth, the handling fee part does not need to be collected manually. Fifth, the UNI part must be collected manually. Pay attention to GAS and do not collect it frequently.

2. UNI dual mining FLM

(1) Flamingo launched by NEO

Flamingo is a Defi cross-chain aggregation launched by NEO, which has functions such as cross-chain, AMM DEX, stable B casting, contracts, etc. In other words, Flamingo is the basic Defi protocol of the NEO ecosystem.

(2) How to mine Flamingo

As shown in the table,

First, the Flamingo front end will be launched soon;

Second, similar to iOS and BTM mining, most of Flamingo’s mining requires cross-chain operations and wallet operations.

(3) Flamingo dual mining UNI

UNI One Coin Dual Mining Guide: Real Profit + Free Loss Calculation & How to Get the Highest APY?

As mentioned above, Flamingo mining supports Uniswap's Bitcoin/Ethereum-LP, and Bitcoin/Ethereum LP can mine UNI.

Specific principles:

Flamingo's smart pool - Flamincome, supports dual-chain mining.

That is, when staking in Flamincome, two LPs can be obtained, reward LP + original chain LP. Cross-chain LP can obtain Flamincome rewards and original chain LP rewards, which is actually dual-chain mining on Ethereum and NEO.

In simple terms,

When friends want to mine UNI, use Bitcoin/Ethereum’s LP.

The first step is to create liquidity on Uniswap and get LP;

Step 2: Take out LP and put it into Flamincome;

In the third step, Flamincome first transfers LPs to NEO to mine Flamingo;

In the fourth step, Flamincome puts LP on Uniswap to help you mine UNI.

Wherever LP is, that is where mining is happening. You deposit LP into Flamincome, and Flamincome is mining UNI and then sending UNI to you.

3. How to achieve maximum APY?

(1) BSC mining for 4 days, earn 600% APY

Let me give you an example.

Xiongxiong wrote in the previous article,

"Bakery＆Cream＆Fortube, how to jointly mine three BNB "first mines" my personal strategy"

Xiong Xiong personally used a joint mining strategy, which is to use CREAM lending, Bakery, etc. for combined mining.

Subsequently, anyswap and bounce, which also support new BSC mines, were added to the combined strategy.

Calculated in U, the total input is 60,000 U, 3,000 U in 4 days;

First, Cream repeatedly deposited and borrowed nesting dolls; second, when Anyswap and Bounce were less popular, they rushed to "be the first to mine"; third, when BAKE's APY fell sharply, ANY and BOT saved their reputation.

(2) Fight the cold, not the heat

The above example actually expresses two points:

First, profits are determined by competition, and the more people there are, the less profit there is; second, rationally use Defi tools such as Cream to reduce costs and increase profits.

Specifically for Uniswap, the benefits of mining UNI are:

First, the project is of high quality. In the long run, UNI has the potential to rise and is not afraid of returning to zero. Second, it is safe and has a large capacity, making it the first choice for large funds. Third, it is stable. With yesterday’s 15% selling pressure, UNI returned to 3.3U again, which means that this APY may continue for some time.

Disadvantages of mining UNI:

First, UNI represents the average profit of current Defi mining, and it is also the profit obtained from market conditions and even industry growth; second, it is unable to obtain excess returns and is not a dark horse; third, in terms of specific operations, GAS is high, and mining, withdrawal and selling may not catch up with GAS.

(3) Recommendations

On the operational level,

If large funds seek long-term stability, UNI is a good choice, and the UNI dual-mining plan of other Defi in the future is not ruled out;

If you have a small amount of money, it is also a good idea to mine UNI, and repeatedly rush for the so-called super high APY "first mine". If the strategy is not good, or the GAS is high, you may lose GAS or even have problems with the principal.

On a larger scale, we should have more choices, and bet on the best rather than the worst, and bet on the cold rather than the hot.

You know,

Mooniswap & DoDo’s TVL growth is much smaller than Uniswap;

Binance’s WING, choose ONT, the APY is still about 300%;

COMP forks: Percent, Fireworks-style Dego, Sushisafe’s YFV, all with APYs exceeding 500%;

…

We pursue safety, and we do not despise earth mines. As long as the risk-return ratio is appropriate, we will go for it.

Xiongxiong's personal strategy is to use most of the funds to mine safer mines such as UNI and CRV, and the remaining part will be blindly mined in Mooniswap & DoDo, and finally rush for high APY earth mines.

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