3 Passive-Income Crypto Projects I’m Investing in for 2022
Long-term plays to beat inflation and grow your wealth
Translation in: French
After trying a lot of ways of earning money in the crypto space, from bot-trading to trading tokens on centralized exchanges (and trying to learn chart analysis), to getting burned by rebase DAOs (see here), I decided I needed something simpler and longer-term. I don’t want to make crypto my full-time job, I can’t always be watching price charts, and I’d prefer less risky returns over the long haul instead of potentially losing my shirt in seconds.
Which brings me on to passive-income.
What is passive income?
Everyone has their own definitions for passive income, but here’s mine: an initial time and money investment that will, in-time, produce a steady return without much future effort.
There are many examples of this outside of the crypto world, for example:
- Property investment- spend money purchasing a property and time fixing it up, in order to rent it and get income over time.
- Dividend-producing stocks- spend time researching, and money purchasing a stock that yields regular dividends.
- Spend time creating, and money marketing a digital online course on something you love. As long as demand is maintained for the course, you earn money selling it.
Passive Crypto Investment?
And so it wouldn’t shock you that there are several DeFi crypto projects that structure themselves as passive-income investments. Here are 3 I’ve found that I’m investing in for 2022. They have different risk-levels associated with them, and different potential for long-term growth. And as with all things crypto, do your own research.
1. DRIP Protocol
DRIP Network is a project on the Binance Smart blockchain (BSC). DRIP is most similar to buying a CD or certificate of deposit. You aren’t able to withdraw your initial investment directly, but then, by virtue of the smart contract, you are daily delivered 1% of your deposit total in DRIP coin. This can then be cashed out, or re-deposited (‘hydrated’) to increase your deposited amount and compound your interest. You can keep withdrawing this DRIP until you reach a total of 365% of your deposit (including the compounded amount you re-deposit). A simple idea, but massively powerful when you take into account the compounding interest! Depending on how often you recompound your DRIP (and how long you’re willing to wait), with a $1000 deposit you could make between $2956.50 and $5.4 million, assuming the price stays consistent.
Regarding the price, you might be worried that the DRIP paid out is inflating the currency, but in-fact DRIP is a deflationary token. DRIP deposited into the faucet contract is sent to a burn address, removing it from circulation. The daily 1% ROI is paid from 10% taxes on sales of the token and 5% taxes on hydrations. In addition, a scaling ‘whale tax’ is charged on large withdrawals dis-incentivizing large manipulations of the price by those with a lot of tokens.
The community behind DRIP is strong and extremely helpful. This is, in part, due to the referral system used by DRIP, which allows you to grow your DRIP deposit faster as you receive a portion of the taxes paid by your referrals and their network!
DRIP is a great example of passive-income, because you make an initial investment for steady, reliable, 1% gains. The minimum work involved is just to claim or hydrate your 1% delivered each day. But if you want to make an additional initial time-investment to grow your referral network, you can raise your deposited amount much faster.
For that, the community at Cryptozoa has been super helpful. They give you great advice and support in how to grow your network, through writing medium articles just like this, creating other online content, or reaching out to friends and family. If you’re interested in hearing more, join the Cryptozoa Telegram group and tell them that David (BomanyD) sent you. They’ll be happy to answer any questions you have, and once you join I’m happy to reach out to you as well. The whole Cryptozoa team is super friendly and helpful.
If you’re ready to invest now, I’ve left full instructions on joining DRIP at the bottom of the page.
2. DRIP Garden
The DRIP Garden is a separate project to the above DRIP, but it uses the DRIP token paired with BUSD in an LP its core token.
It is a mining game that earns 3% daily. The way it works is you deposit/sacrifice your DRIP/BUSD tokens to buy plants. These plants then produce seeds over time. These seeds can either be traded for DRIP/BUSD LP tokens that you can then break up and sell, or else they can be compounded to buy more plants, which then produce more seeds.
As you play over time, you also grow a ‘fertilizer’ bonus that multiplies how quickly you grow seeds.
There are several unique advantages to this miner game that make it better than the competition- one way is that over time it reduces the cost of plants to make it easier for new capital to enter the contract. This ensures that the contract balance is continually increasing rather than being drained by miners that have been in the game longer.
If you’re bullish on the price of DRIP over time, this is a great game to get into. And the DRIP/BUSD LP tokens it creates will also be useful in The Animal Farm (see below).
Check it out here and click ‘Drip Garden’ in the sidebar.
3. The Animal Farm
The Animal Farm is a new liquidity farm and lending protocol on the Binance Smart Chain launched by the developers of DRIP. It has a unique 2 token system, where DOGS are the primary reward token in the protocol, earned by staking single tokens such as BUSD, WBNB, CAKE, BTCB, and ETH, or pairs such as USDT/BUSD, BTCB/ETH. DOGS have high liquidity and therefore a relatively stable price point.
The reason for this is that in order to earn the second token on the farm, PIGS, you must stake DOGS/BUSD, DOGS/BNB liquidity. You can also choose instead to stake DRIP/BUSD or single stake DOGS to earn PIGS. PIGS have a relatively low liquidity, meaning that the price will have larger swings, but the protocol has several mechanisms in place to buyback and burn DOGS and PIGS tokens to appreciate price over time. You can also stake your PIGS tokens to earn BUSD as a member of the protocol.
At the moment of writing, you can earn APR’s on the core DOGS/BUSD and DOGS/BNB pools between 3–7% daily. PIGS pay out a smaller daily amount in BUSD, between 0.5–1%, but this could change.
For full details on this project, see my in depth article here: https://cryptozoa.com/the-animal-farm-launch-deep-dive-40eb9aa6a85d
So how do I invest in these?
The DRIP garden is on Binance Smart Chain, and just requires a purchase of DRIP/BUSD LP. You can purchase this easily with BUSD by going to theanimal.farm and clicking on ‘Drip Liberation’ in the sidebar. This will allow you to create the LP automatically from BUSD without paying any tax on your purchase of DRIP.
To invest in The Animal Farm you can either buy PIGS and DOGS from Pancake Swap and then stake or create liquidity for staking on the farm, or else you can start by farming your other coins such as BUSD or stable coin pairs, and then take the resulting DOGS tokens, form liquidity with those, and continue to compound.
DRIP! DRIP! I want to invest in DRIP!
I was hoping you’d say that!
If you’re just looking for a DRIP buddy address, don’t use mine. But if you’re interested in hearing about our amazing Cryptozoa DRIP Team, then read this.
1) You’ll need to start with BNB (BEP-20) coin on the Binance Smart Chain in a wallet such as MetaMask. There are many ways to get to that point and there are articles and videos findable on Google to help if you are new to DeFi or the Binance Smart Chain.
2) Go to the SWAP page, and exchange BNB for DRIP. Make sure you get at least 1.2 DRIP, as there is a minimum of 1 DRIP for deposits, and make sure you leave enough BNB in your wallet to cover transaction fees in the future.
Choose how much DRIP to purchase here.
3) Then go to the FAUCET page, and enter a buddy address in the referral section- it’s on the left hand side of the page when you scroll down. You need a buddy to sign up. Consider adding me as your buddy with the below address and I’ll send you some DRIP as a thank you!
Buddy: 0xA8c37F051bcA9BC50338Ab425945aA7Eb6C976fA
Scroll down and enter the address of the buddy you’d like to sign up under
4) Deposit at least 1 DRIP (ensure you have enough BNB to pay for the gas fees). Please remember that anything deposited is not withdrawable, but you will receive 1% of that staked amount every 24 hours.
Choose how much DRIP to deposit here. You’ll then be able to see your deposits and how much is available to claim or hydrate.
5) You’re set up on DRIP! Get ready to receive 1% daily.
Now join our telegram here! We’d love to help you get the most of of DRIP. Just tell them David (BomanyD) sent you.
Disclaimers: Under no circumstances should any of this information be taken as financial advice. I’m not a finance professional and so far most of these numbers are purely theoretical. Mileage may vary, and I am still learning. The above is my own story and you should do you own research based on your own finances and risk tolerance. Don’t invest anything you’re not willing to lose.
