Avalanche: QI-yield experiment

I'm going to commence a little $AVAX-experiment on @BenqiFinance with ... well: $AVAX, and their $AVAX-producing protocol token, $QI.

But, before we do that, let's learn how to stake $QI to produce $AVAX and $QI, first, shall we? 

I have both $AVAX and $QI-yields accumulated.

There are several, many, ways to make $AVAX with $AVAX: 

• You can STAKE it as $sAVAX and have that embedded x-token growth that we all know and love ... you do know this, right? That's 7%ish.

• You can SUPPLY it on @BenqiFinance, that's ~3%

• You can leverage it as a BORROW.

Okay, but we know this... and YOU know even better than me this.

Now, let's turn to $QI.

How does $QI make $AVAX.

You supply it to @BenqiFinance for a ... [wait for it] ... whopping 11.5% yield.

Hello? Please sign me up! *geophf enqueues.

The problem with this $QI golden goose is that, granted: it yields $AVAX better than any other supplied asset, but it does not self-produce.

How do we produce $QI ... to produce $AVAX (our goal)?

Any SUPPLIED or BORROWED asset on @BenqiFinance does that, of course, but ... then we come right back to the @BenqiFinance rewards-tab:

The QI-AVAX LP farm on @BenqiFinance is producing $QI at a 66% clip.

Which is nice.

So, let's provide liquidity to, then stake QI-AVAX on @BenqiFinance.

An HOWTO. 

Step 0: claim $QI and $AVAX yields from the @BenqiFinance marketplace.

Incidentally, this transaction, today:

https://snowtrace.io/tx/0x0cf267b1be3653caedf8b7786a68ec7c07930f81e62373869a1ebec9ea3acce2

is the first time IN MY LIFE that I've collected yields from a protocol on Avalanche.

Mark your calendars when you start making money.

I do.

Also, incidentally, but no: to the point, you see that the transaction fees (0.02 $AVAX) is LESS than 1% of the yields.

If a transaction fee eats into your yields, you don't have yields, you have fees.

As a rule, I only collect yields that are at least 100x the transaction fee.

Step 1: provide $QI and $AVAX as liquidity to the QI-AVAX (@pangolindex) LP.

You see for my Step 1, I provided the @BenqiFinance marketplace yields.

Which means I get this $QI-yielding LP ... FO' FREE!

I'm not complainin' 😎

Step 2, and importantly, so I'm glad @BenqiFinance provides this step immediately following Step 1, is this:

STAKE your QI-AVAX LP onto @BenqiFinance to start earning those sweet, sweet $QI-yields, fam! 

Step 3: We're in business!

@BenqiFinance very kindly tells you the amounts of the QI-AVAX LP you have staked, and, momentarily, you see your accumulated $QI-yields.

YAY! 

Of course, this LP, as well as any LP, has inherent risks. I suggest you read my article on LPs if you've concerns.

If you can't stomach losing even 1% of your $AVAX (or... okay, your $QI? I don't judge.) (judge. judge. judge), don't put your $AVAX into an LP. It's that simple.

Link to my article on how LPs work, called ... [wait for it] ... "Impermanent Loss, the conversation."

Fair warning: buckle up, buttercups. If you have feelz, they gon' get hurt reading this article. 

Okay, we now know how to create and to stake the QI-AVAX LP for those sweet $QI-yields! YUS! 👏

Now we're ready for some $AVAX and $QI experimentation.

POP QUIZ TIME!