With a daily income of 2 million dollars, what fields has the youngest billionaire in the blockchain industry, SBF, cultivated in the DeFi farmland?

This article is from: 8btc, author: longcrypto.

Recently, the news that a certain domestic film star earns 2 million a day has attracted widespread attention from society. Some media reported with the headline "She films one movie, and you have to work without eating or drinking for 1191 years," which made many workers feel uncomfortable. Unfortunately, the star's earnings are not honorable, involving issues of tax evasion.

In the rapidly rising DeFi industry, earning millions daily through mining or farming is not out of reach; importantly, the sources are transparent and traceable on-chain.

For example, Sam Bankman-Fried (SBF), co-founder and CEO of FTX and advisor to Serum, has nearly 3 billion dollars in a publicly disclosed address for farming, earning about 2 million dollars in profit daily.

Some may say that his capital is too large and not relevant for ordinary DeFi farmers with smaller capital. In fact, SBF was virtually unknown in the blockchain industry three years ago. Now, at just under 29 years old, his net worth has skyrocketed to the tens of billions, making him one of the richest people in the blockchain industry. Therefore, observing his holdings can provide some reference for ordinary DeFi farmers.

SBF's Wallet Holdings

SBF's wallet contains assets worth 200 million dollars, with the remaining 2.5 billion dollars in farming.

In the wallet, the top five assets by value are SRM (170 million dollars), USD (10 million dollars), BBTC (5.49 million dollars), SXP (4.94 million dollars), and USDC (4 million dollars).

SRM is the token of Serum, and SBF has been helping to build Serum since last year. Recently, at the "Super Computing · Fusion, 2021 Global Blockchain Computing Power Conference" hosted by 8btc, SBF praised the achievements of Serum.

In the past week, the SOLANA ecosystem has exploded, and almost all Solana applications are based on Serum. However, the overall valuation of Serum is nearly 100 billion dollars, which is indeed daunting. SXP received good news today, as the project team announced the destruction of 17% of SXP tokens, currently valued at over 200 million dollars. Subsequently, Binance founder CZ also tweeted his surprise at the project's actions. As of the time of writing, SXP has risen by over 20%.

Farming Portfolio

SBF's main capital is used for farming, with the largest proportion of funds on BSC, which indirectly indicates that BSC is attracting more and more users to participate.

On Ethereum, there are nearly 600 million dollars, mainly concentrated in Sushiswap, with LP primarily consisting of ETH paired with SUSHI, YFI, AAVE, LINK, SNX, REN, UMA, and stablecoins.

The tokens selected by SBF are mostly leaders in their respective niches. For example, AAVE is a leader in flash loans, LINK is a leader in oracle services, and SNX is a leader in derivatives. When forming LP for mining, the biggest concern is the risk of impermanent loss; selecting industry leaders allows one to benefit from token price increases while also gaining additional returns. This has proven true, as almost all leading tokens have reached new highs since the DeFi token adjustments last October, with AAVE and SUSHI significantly outperforming ETH during the same period.

On BSC, there are 1.9 billion dollars, which is relatively dispersed across Belt, MDEX, Bunny, Venus, Pancakeswap, Nerve, and Ellipsis.

On Belt, Nerve, and Ellipsis, almost all funds are in stablecoins for farming, with annualized returns exceeding 30%.

On MDEX, the strategy involves pairing stablecoins like USDT with ETH, BTC, BNB, XRP, ADA, LTC, DOT, etc., as LP for farming. These assets are primarily among the top ten projects by cryptocurrency market capitalization.

On Bunny and Pancakeswap, pairs include BNB with BTC, ETH, DOT, UNI, XRP, BAND, ALPHA, ADA, SXP, DODO, XVS, and USDT. It is worth noting that XRP and ADA are criticized by many in the community; however, SBF seems unconcerned about this.

Daily Income of 2.3 Million Dollars

The farming fields cultivated by SBF can yield 2.3 million dollars daily based on current market conditions. Compared to the 2.5 billion dollar cost, the annualized return rate is around 33%.

Sushiswap: Daily income of 450,000 dollars

Belt: Daily income of 330,000 dollars

MDEX: Daily income of 320,000 dollars

BUNNY: Daily income of 880,000 dollars

Pancakeswap: Daily income of 230,000 dollars

Nerve+Ellipsis: Daily income of 90,000 dollars

Every day, just by clicking the mouse, over 2 million dollars are credited.

It is important to note that there are risks in DeFi farming. For example, yesterday a project on BSC experienced a vulnerability that led to 50 million dollars being stolen, and it seems almost impossible for investors to recover their funds. Additionally, bugs in the project can also lead to user fund losses; for instance, a recent upgrade of the lending platform Venus on BSC caused several yield farming strategies to encounter bugs, resulting in user fund losses, and some yield farms have yet to compensate users for these losses.