MINING RobiniaSwap (RBS) Tokens? Could you be making one of these mistakes?

in Project HOPE2 months ago

obraz.png

INTRODUCTION to the problem

line2.png

The other day, I spoke with one of our PH community members who has been participating in our small marketing campaign for RobiniaSwap. He has been mining RBS tokens and re-staking all claimed ("harvested") rewards and one thing got my attention - he seemed to have reinvested his earned RBS tokens on a daily basis. Which I consider quite a mistake.

What is the problem one would ask? Why not to reinvest minted RBS tokens day by day?

The answer is quite simple and straight forward:
Because the cost of BNB fees (which we will endure during each transaction) may cause us to lose a large part of value of those minted RBS tokens.

Comparing to ETH blockchain, the fees we would have to pay for each transactions done on Binance Smart Chain are very low. But it's still not free.

SMALL EXAMPLE

line2.png

Let's say we've earned 10 RBS tokens and we would like to stake them. That requires "harvesting" rewards and then staking those received RBS tokens. Those are 2 transactions.

Each transaction would cost as little as 0.00117 BNB which is currently worth around 0,5 usd. So two transactions would cost us already slightly over 1usd.
At the same time, the price of 10 RBS tokens are as little as above 2usd.

This would mean that by going through this process, we would lose half value of mined tokens.

SOLUTION to the problem

line2.png

The solution is very simple: be patient and avoid commiting to unnecessary transactions.
"Harvest" and restake your RBS tokens only once every few weeks. When it's worth to pay those necessary transaction fees.

That would be all for today :)
Yours, @crypto.piotr
Founder of Project.hope community

cc:
@josevas217
@chucho27
@trabajosdelsiglo
@hardaeborla
@samminator
@reeta0119
@alokkumar121
@tfame3865
@garybilbao
@lupafilotaxia
@lanzjoseg
@karupanocitizen
@ramsesuchiha
@menoski
@doppley
@alanasteemit
@tomoyan
@machnBirdSparo
@joelagbo
@dgalan
@the-prithvi
@qsyal
@carlir
@unbiasedwriter
@mccoy02
@adityajainxds
@mintymile
@rbalzan79
@mandate
@madridbg
@carlos84
@tocho2
@lennyblogs
@yusvelasquez
@luckyali
@amestyj
@emiliomoron
@thetimetravelerz
@franyeligonzalez
@adesojisouljay
@joseph1956
@printskill
@muratkbesiroglu
@kamranrkploy
@knowledgefruit
@belemo
@gbenga

Sort:  

Greetings @crypto.piotr 💕😊

It really quite surprising some people are making the mistake of re-investing their harvested RBS tokens. The important question i would have asked them was that why was the major reason they harvested in the first place? Why can't they continue farming and keep investing for longer period of time to make mkre profit unlike re-investing their harvested RBS tokens?

Well.. It's also quite nice on the other hand seeing people re-investing their RBS token back though instead of selling or dumping for cheap prices. It really shows some people are beginning to understand how valuable RBS can become in future even though the gas fee might be a bit cheap since it's BNB but at the same time I recommend staking the required coins than can help you earn higher ROI or APR on the pool to mint mkre RBS tokens instead of just harvesting and re-investing.

Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead ❤️💕❤️

Hello friend @piotr.

Certainly when I started to claim the rewards, I claimed my first RBS product of the minted bsteem and minted them to RBS, however when I started to see that the RBS tokens were going down I took out account and it is not worth doing that process daily, so I am experimenting doing it only once a month to see how profitable it is.

I am experimenting with doing it just once a month to see how profitable it is. Greetings friend and thank you for informing us of this error and that it is not really profitable to be claiming and accruing RBS rewards on a daily basis.

Thank you for this information. An important point that you just clarified. I estimate maybe doing it 2 times a month or every 20 days maybe. It all depends on the price of RBS. Still, it doesn't hurt to do a little math first.

Its a good point and I harvest almost once a week so that I don't pay more for txn fee. this is something I am more particular and there is no worth it if I harvest every day because the fee will cost me more. Nice post Piotr.

Thank you.

 2 months ago 

I agree with that strategy, I am doing just what you say, I also took out the accounts of the commission charge, and it is preferable to accumulate a good amount to be able to make the different transfers.

Greetings my friend, that's good advice. It is better to be a little patient and not to make more operations than necessary, which consume resources in commissions.

The recommendation is on point. due to the steep fall in price, mining RBS isn't really lucrative currently. Hence the need for these precautions

Greetings friend @piotr, thank you very much for the warning, at first I was one of those who made that mistake with the idea of speeding up the process of creating RBS by staking RBS. However, as you say, given the drop in the value of that token, I have decided to have a little more calm and patience.

A hug greetings

Hello @crypto.piotr!

I've noticed this thing at the very first and I had to calculate the gas fees for the transaction so I won't be spending more than what I'm gaining or at least not to lose a huge portion of what I am investing. For the person that was doing that, it is really okay and it happens, as long as that person now knows that he should avoid that and he is doing then all good for him/her.

Thanks for sharing, hopefully no more people would fall in a similar mistake.

Hi @crypto.piotr.

It is very true what you express, it is convenient at this time to wait to accumulate enough RBS tokens to harvest and thus reduce the payment of commissions. Greetings and thanks for such interesting information.

Greetings @ crypto.piotr. Thank you very much for this valuable information about Robinia Swap, in my case I am withdrawing the RBS tokens weekly, but if it is good to be able to take into account these commissions in order not to lose in transactions .

Greetings my dear friend @crypto.piotr , it is very true what you mention, we must wait a reasonable time to harvest and reinvest our tokens, otherwise the commissions would be eating part of our profits.

See you later, have a good week.

thanks for this awareness. Some of us are quick to always wanting to restake and I believe this will help us cut cost

It is okay to harvest as often as you like if RBS reward is bigger than the fees. If not... think about the fees before you do anything.

 2 months ago 

Very well said @tomoyan :)

It's a nice point you have pointed out , we should reinvest once a week or in 15 days so that you will be charged less fees and you will gain more token.

Same applies to bee token also which RBS recently having farm. Just hold and invest in one shot.

That is a great observation you made, alot of people might not even notice it. It best to save it up and reinvest when the RBS token is many.

Hi @crypto.piotr
Yes, indeed, it is not logical to do it so often, because we would only be losing money with the transaction cost, although it is low, it ends up subtracting from the total because the price of RBS is very low right now

Hello friend, thanks for the information, I agree with you, I think it would be a great loss. It would not be a good business for any of us. Particularly so far I have not withdrawn any profits. Greetings.

Thank you @crypto.piotr for this useful information.

Hello dear @cryto.piotr Interesting reading of the process of harvesting and reinvesting, I had not thought it has a lot of logic because exactly the same as what happens with any banking transaction, when for example, I take the interest generated in a fixed term account to generate profits but I take those interests monthly and transfer them to other accounts, as I make these transactions the costs of commissions make the profits decrease and the more movements I make the more commissions and non-refundable payments in my favor that will be generated by losing my investment, on the other hand, if I accumulate the interest generated in the same account making the capital grow next month I will have a greater amount of capital that will generate a greater profit in my favor. Thanks for the explanation, it helps me a lot not only in RBS but to think well before making any movement in my investment portfolio to review the costs of daily commissions.

Very well said, sure if one will do the maths there is no point harvesting little RBS and staking them back as it incur more cost of transaction thanks for sharing.

This is a good advice. In order to avoid wasting unnecessarily on gas fee, it is better to harvest and restake when the RBS has accumulated a bit.

Thanks for dropping this solid advice buddy

What you said is true. There is no need harvesting daily, just do it weekly or more.

Greetings @crypto.piotr

Each transaction would cost as little as 0.00117 BNB which is currently worth around 0,5 usd. So two transactions would cost us already slightly over 1usd.

Perfect example sir,

Let's say we've earned 10 RBS tokens and we would like to stake them. That requires "harvesting" rewards and then staking those received RBS tokens. Those are 2 transactions.
So two transactions would cost us already slightly over 1usd.

Right, It will be total loss for people who are reinventing minted RBS tokens day by day.

Thank you for sharing : )

A solid tip as well as a warning, I use to mint it after 10 tokens as well but then I realized about the fee as you mentioned in the post.

Agree on that part!
Volume matters.

Hello @crypto.piotr, Thank you very much for this warning, I had not noticed this great detail and could have been very close to making this mistake.

Anyway, I just noticed that the price of RBS is going up, which is good.

I was doing "harvest" daily for the first few days as the rewards were so great, but now that inflation has come down, it's no longer worth doing it more than once a week (or even less)

Thanks for the advice

Ps, there seems to be a bit of a pump going on at the RBS price which sounds great, but I wonder if there has been some news that triggered it?

 2 months ago 

Good points @qsyal :)

there seems to be a bit of a pump going on at the RBS price which sounds great, but I wonder if there has been some news that triggered it?

It's hard to tell. I couldn't find any news that could explain current price pump. Let's see how long will it last

I'm assuming the value of RBS will go up as long as there is new users coming... It's kind of pyramid scheme. Essentially people need to buy certain amount of RBS before they can start staking.

 2 months ago 

hi @mtl1979

Essentially people need to buy certain amount of RBS before they can start staking.

Great to see that you're still around :)

That doesn't exactly work this way. Most people seem to be staking their crypto using RobiniaSwap. We're mostly staking our steem there, without really buying any RBS token. This way we're providing liquidity to the liquidity pool.

And we're being rewarded with minted RBS tokens for doing so.

Cheers, Piotr

Minted coins itself don't push the price up... Only fulfilling sell orders will...

If you calculate token value as ratio of currency pair in liquidity pool, then the value should stay same or drop when minted coins are used. That's because good contract tries to "expand" the liquidity pool by keeping the existing ratio.

My Dear @crypto.piotr
People are always attracted to the new and cherish the old. The market is no exception. I wish your foresight to spread among us.
Your
@mrnazrul Bangladesh

Yes... let me check my RBS..and do the needful(: , when I was doing write up of Robiniaswap, I did that mistake because I was needing to understand what this does...harvesting RBS, then staking!!

Coin Marketplace

STEEM 0.49
TRX 0.09
JST 0.066
BTC 50175.98
ETH 4296.57
BNB 567.72
SBD 6.31