Drip is currently the best passive income play you can find in the world of crypto and decentralized finance. Of whatever you are willing to put into the smart contracts you can claim 1% every day for 365 days or 365% of your initial input. Simply put. It gets more interesting though through the magic that is compounding interest.
How does it work?Drip is a system of smart contracts released on the Binance smart chain, your initial deposit earns 1% per day — this can be either claimed (paid out) or compounded. At first you would only be able to pay out a total of 365%, but through compounding you will be able to increase the deposit and increase you total payout amounts.
Example:If you would simply deposit 100 Drip and claim your 1% every day for 365 days you would end up with 365 Drip and made a nice profit.
If you were to deposit 100 Drip and compound that for 30 days at 1%/day you end up with 134,78 Drip (100 * 1,01^30). This will in turn enable you to withdraw 1,347 Drip every day for 365 days. Result? 492 Drip, an increase of 34,8%! And a total return on your investment of 492%.
This is indeed just a simple example of how compounding can extend and increase your payouts from Drip. There are many ways one could play this, alternating days of payout and compounding, compound to a certain level and payout after that and many more which I will cover in a later article.
Is this sustainable?Yes, it has been running and thriving since the beginning of 2021 and has made many people a sizeable profit.The Drip network finances itself through a system of taxes on almost every transaction done. There is a 10% tax on deposits, payouts, airdrops, transfers and sells of Drip. There is also a 5% tax on compounding.To defer whales from draining the pools there is a hefty whale tax put in place.This system of taxes and incentives to compound has worked very well for months and months.
How to get started?1. You need to aquire BNB from a centralized exchange like Crypto.com, Binance or Kucoin and transfer this to your personal wallet (e.g. Metamask/TrustWallet).2. Exchange BNB for Drip on the fountain of the drip.community page. https://drip.community/fountain — don’t spend all your BNB, leave like 0.1 for transactions fees when depositing and compounding.
Go to the faucet page and on the bottom left either enter a buddy address (0x8A824a624554D7c7C9BA6b42897Ca61FC641Bf2e) or when available hit the “buddy detected” button. After that you will need to hit “update buddy” to assign a buddy to your wallet. Joining Drip is only possible with a buddy.
4.On the top right enter your desired amount of Drip and deposit into the faucet. Enjoy 1% compounding or payout per day!
If you have any questions, feel free to hit me up on Telegramhttps://t.me/Dave_on_DefiDrip CommunityDrip Whitepaper
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