Recommendation! Earn income now from th e ‘Black Rock of DeFi’

Saturday, 31 July 2021 — Albert Park

[4 min read]

Dear Reader,

‘Mind-bending…’

That’s how CoinDesk’s Brady Dale recently described the revolution that’s happening with what we are calling ‘new-game income’.

Dale likens it, and DeFi in general, to the course the internet took as a publishing platform…

‘First, it recreated things from the analog world. Then it invented new things. Then new things were built on top of the new things. Finally, the internet colonized the analog world. We’re at phase 3 in DeFi: new things built on new things.’

You’ll get a feel for the ‘mind-bending’ potential of these new income tools in our just-released how-to guide, which you can read in full here.

One of the strategies we unwrap for you is a protocol called Yearn.

Yearn was formed in a blaze of glory early last year by a coding superstar of the DeFi world, Andre Cronje.

He basically created pre-programmed ‘vaults’ to automate the yield generation strategies he was doing manually.

Since then, these vaults have offered up totally stratospheric returns as high as 40%. Those massive returns, clearly, come with much higher risk.

The Yearn strategy we outline here is simpler. You likely won’t get an income as high as 40%. And, while it’s still riskier than having your money in the bank (we outline risks in your new guide), it offers a more stable yield with lower gas fees.

Some have called Yearn the ‘Black Rock of DeFi’. That’s because it’s very similar to how Black Rock made a plethora of managed funds available to anyone in the world in the ‘80s and ‘90s.

But that’s where the old game/new game similarity ends.

The difference between this and a managed fund with Black Rock is that in DeFi, you retain full control of your stablecoins.

At all times.

This is possible due to smart contracts built on blockchain protocol.

This is the brave new finance world.

One we’ll be introducing you to in full here.

There are multiple avenues opening up here. These range in risk, reward, and required crypto knowledge.

But what you’ll find in this brand-new report are three beginner strategies.

They’re based on generating income from stablecoins; cryptos that try to maintain a 1:1 peg with the US dollar.

We have how-to guides on other income methods (like using staking) in the works. But we wanted to fully explain the ‘anyone-can-do-it’, simpler option to you first.

These stablecoin income strategies are the best way to test the waters here.

Why?

Well, first check this out…

That’s a snapshot of the kind of income certain stablecoins offer.

‘APY’ is annual percentage yield.

As you can see, they’re impressive. They blow the banks out of the water.

But that’s because they come with added risks. It’s a very new financial instrument, no matter how ‘stable’ it is — this new income avenue is less than five years old. For that reason, if you want to start earning income this way, we suggest you start out simple and work your way up.

Even though it’s simple, you should still consider this three-part income strategy as ‘speculative savings’.

Click here to read on…

Regards,

Ryan Dinse,
Editor, New Money Investor

We’ve spent the last few weeks in lockdown here in Melbourne. And while we haven’t been out and about much lately, everywhere we look, we see more signs of it…

That is that costs of living are likely going up in the future.

The first night out of lockdown this week, we thought we would venture to the local pub for their ‘famous’ parma night, only to find out they had scrapped the special.

Understandably so. We found the pub a third full. People weren’t mingling, and most weren’t sticking around too long; they had a quick dinner and headed home.

No matter how you look at it, the cost of doing business since the pandemic started has gone up for many restaurants, pubs and retailers. Raw materials, shipping costs, and food prices are increasing. It wouldn’t be a surprise to see menu prices rise.

Over the week, we spoke to a friend who’s just returned from spending a few weeks in Queensland. He didn’t mention too much about the weather or the beach. Instead, one of the first things he reported was: ‘I spent a small fortune on a car rental…I could have bought one for the same price.’

As we found out, one of the first things rental car companies did when lockdowns hit last year was to sell much of their car fleets when people were looking to buy cars to avoid public transport. Now that tourism has somewhat picked up, rental cars are in short supply.

Granted, car and semi-conductor shortages are likely temporary.

But we’ve also been keeping an eye out on housing. It’s no secret property prices keep going up, not only to buy, but to rent.

Here is ABC:

‘Australian tenants are experiencing their biggest annual rent increases since January 2009, during the global financial crisis.

‘The median rent of houses and units jumped to $476 per week in June, a 6.6 per cent increase compared to the same time last year, according to the latest CoreLogic data.

‘Regional tenants were hit with their biggest yearly rent hike ever, with the median figure up 11.3 per cent to $441.’

And speaking of housing…over in the US, property prices are also increasing.

Median sale prices of homes shot up by 23.4% in the 12 months to June. It’s now at a record high of US$363,300.

At the same time, US consumer prices are up 5.4% for the year to June, the highest in 13 years.

Of course, the big question here is whether these spikes are ‘transitory’, like the US Fed thinks, or not. Interestingly enough, US Fed Chairman Jerome Powell took two minutes this week — literally — to explain what their definition of ‘transitory’ is (emphasis added):

‘When we think of inflation we really think of inflation going up year upon year upon year upon year. That’s inflation. When you have inflation for 12 months or whatever that may be, I’m just taking an example not making an estimate, then you have a price increase but you don’t have an inflation process. And so part of that just is if it doesn’t affect longer term inflation expectations then its very likely not to affect the prices of inflation going forwards.

‘What I mean by transitory it’s just something that doesn’t leave a permanent mark on the inflation process. Again we don’t mean, I don’t mean that producers are going to take those prices increases back, that’s not the idea. It’s just that they won’t go on indefinitely.

‘So to the extent people are implementing price increases because raw materials are going up or labour costs or something is going up the question really for inflation really is does that mean they are going to go up the next year by the same amount? So you are going to be in a process where inflation, the inflation process gets going and that happens because people’s expectations about future inflation move up.

‘We don’t think that is happening, there’s no evidence that it’s happening. But, nonetheless we have to watch this very carefully because we are two mandates maximum employment price stability. Price stability for us means inflation averaging 2% over time and so we have to be very careful about that.’

A couple of points on this. One, it’s clear that the Fed is in no rush to cut back stimulus, even if inflation runs high for quite a while.

The other, the most important one, in my opinion, is the role that expectations play in all this. Remember, after all, this is a confidence game.

It may be that things like car shortages are temporary. But we now have consumers coming out of lockdown, with many having some extra money in their pockets. This, along with the fact that the Fed shows no inclination of tapering stimulus anytime soon. If people expect prices to keep rising while the value of their money in the bank wastes away, they may bring spending forward.

In a scenario like this, things like gold and bitcoin could do well.

Best,

Selva Freigedo,
For The Rum Rebellion

Selva is also the Editor of New Energy Investor, a newsletter that looks for opportunities in the energy transition. For information on how to subscribe, click here.