Hello SPIers, time for an update on our EMP holdings. It's been maybe a month and the markets have changed alot so the value of our holdings in dollars is down. I had debated in my head and im super happy I only invested ETH we already had and never converted any BTC into ETH to invest in this because ETH has dipped about 10% more than BTC this month and that would have cost us about $3000. Who am I kidding? I could never convert our BTC into something else, maybe $1 million, haha.
Ok, so from taking a quick look at the last update here, a few things have changed since this time. I set 3 goals in the last update, 1/ withdraw earnings until we saved up 2000 HBD, 2/ save up and buy 1 full ESHARE and 3/ FIX our LP token so that when EMP is on peg, our LP token is worth 10 ETH.
EMP/ETH LP farming earns us ESHARE rewards
ESHARE staking in the boardroom earns EMP rewards
1/ Smashed it (2200 HBD came from EMP)
2/ Bought this on a dip
3/ EMP is conveniently on PEG now and our LP token is worth 10 ETH
So that's all 3 things done that i said i was going to try to do. On top of all this, i've have been stacking farming rewards in the form of BUSD and we have
I'd say we are doing ok from EMP so far. We've taken 2200 HBD, got a free ESHARE and have 2200 BUSD sitting in our wallet. Oh, we have a Nano node as well, I almost forgot about that. We could go for another ESHARE as the earnings from them are really good but I'd like to hit 5000 BUSD first. So right now we are chilling. There are 2 ways we can go about this going forward and keeping in mind we are now 2-4 months into a bear market that just getting started.
1/ Compound farming rewards
We could compound farming rewards and build up a larger holding of ETH so that when the bull market returns in 2-3 years, our earnings will be huge. I'd be talking 5 figures a week easy.
2/ Convert farming rewards to BUSD and sit on them and reinvest later
I think the price of alot of cryptos will be much cheaper in 12-18 months from now so instead of compounding, save up the rewards in BUSD and then convert them into EMP/ETH when the price of ETH is under $800. That might sound like crazy numbers to you right now but we'll see where the markets are in 18 months. It's never a bad idea for an investment fund to build up a pile of cash in a declining market.
By doing it this way, we are sorta safeguarding our earnings because EMP could fall off its peg and never return at any time between now and in 18 months. We have no idea how a 5-month-old crypto farm project launched at the start of a bear market will be performing 18 months from now. We collect the BUSD and if EMP is still performing well and over the peg, we invest most of our BUSD back into it and I'd guess see more growth in ETH holdings overall.
The goal is not earnings, it's holdings value. Earnings are important but holdings value is more important. We could compound and earn more and compound more but I believe the coming decline in the markets will outperform compounding and by converting farming rewards to BUSD, there is much less risk involved. With $24-25k on the platform, we are maybe already overexposed.
With that said, I am reinvesting any rewards we get from our ESHARE. On a good week, it can earn $230-280. For the past 2 weeks, I reinvested 1 week's earnings into the EMP/ETH LP and with the 2nd week's earnings, I bought us a nano node for 500 EMP.
We converted farming rewards (ESHARE) into BUSD
We reinvest boardroom rewards (EMP) back into the platform
Do this for 12-18 months
If the project is still performing well, we make a large investment with our BUSD and increase our ETH holdings and EMP earnings by 2-3x.
I am aware there are a few EMPers on HIVE and they will be shaking their heads at this plan as it's not the proper way to play the EMP game but SPI funds are not mine. I play the game properly on my personal holdings which are larger than SPIs but again SPI funds are not mine so I have to gamify it to add a layer of risk reduction to project investors' money a little better. Im selling ESHARE and reinvesting EMP so im, not the worst player.
Hmmm, there's not much more to say so I'll give a quick update on holdings and do an outro. You know what? I clean forgot about our auto vault EMP LP as well, it just does its own thing so it's easy to forget about.
and the auto vault where we've compounded 13% more ETH than we invested maybe 2 months ago.
All in all, we take in $60-80 a day from farming and our ESHARE can earn us $230-280 a week if EMP is over-peg. If the ETH price drops 50%, earnings drop 50% because EMP is pegged to ETH so that is worth remembering.
If we could do an average of $50 a day over the next 18 months, that would be amazing and give us a BUSD balance of $27,400 not factoring in an 8-9% APY being earned on the sitting balance. Even if that was split into 2 parts and 1 part reinvested back into the EMP LP when ETH is $800, that would be a 170% increase in ETH holdings on EMP. Plus we would still have 14000 BUSD to play with and snap up bear market bargains. BTC at under $15,000, we'll take half please, HIVE at under 15 cents, 30,000 will do, DOGE at under 1 cent, give us 10,000 for a punt. Who knows what the markets will be like 18 months from now, the crypto bull market could return as interest rates rise and the stock market finds its bottom, HIVE could be $5 in 3 months' time, BTC could be over $100k but I'd bet BTC will hit $20k before it hits $100k and HIVE will hit 20 cents before it goes to over $1 again. Hey, same 20-100 ratios, nice. We're in for some bad times but if we expect them, the blows are not so hard. If we see another crypto winter, at least we can look forward to stacking up on lots of discounted investments. SPI built its foundation last bear market so if we can expand on that and 2-3x the fund's assets over the next 3-4 years, we'd be in a very good place to be a million-dollar fund.
As always we play the long game. Play it as best we can and increase holdings. Hope you found out a little more about our EMP investment, how much it's worth, what it's earning us and the 12-18 month plan.
Have a great everyone and thank you for taking the time to check out the updated post.
This is interesting 👍👍👍. Thanks for sharing
Glad you liked it :)
Yes, I do
This is really awesome and I appreciate every part of it
Super stoked you enjoyed it, thanks for leaving feedback
It's a pleasure
This is amazing, I like the analysis so accurate !
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Thank you for the nice words. EMP is one of my favourite defi projects at the minute
I like the positive outlook and plans for a bear market: build, build, build 😍.
EMP seems like it was a very good investment. Where you say: if EMP is performing well ... what about if it is not performing well, are we covered there?
Would you say 3-4 years is a good time scale to be planning from a personal point of view (I mean, is that when I should be scheduling my round the world cruises)? 😎
EMP is working very well, for now, there are a few pegged farms that have been released in the past and to be honest, most have failed. By failed I mean they last their peg dropped massively. If this were to happen with EMP, we could lose a large chunk of our ETH holdings. Thankfully the dying process is a long and dragged out one giving lots of time to exit. EMP has a few things others dont and so far, it's working. If I had to put a figure on an exit, I'd say to point of our profit, to breakeven. We have 10 ETH on the LP and we've got 2300 BUSD from EMP which would get us around 1.3 ETH so if EMP were to lose its peg and fall 10% and our LP was worth 9 ETH, we'd be covered. If it were to fall more, I'd have to consider exiting at breakeven. The longer we pull out BUSD, the better it is for us.
I'd say book the year off for 2026 😁
Thank you for explaining about EMP - good to know there would be plenty of time to exit 🙂.
Yay!