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

in Project HOPE2 years ago

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INTRODUCTION to the problem

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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

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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

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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

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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 years 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.

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