The detonator is a project that you can invest in and where you can grow a passive income through compounding interest. But the detonator does this in a different way than you see on most projects. Everyone knows how powerful compounding interest is, and what it can do. But where almost all projects that set up work with a single token, the detonator is an exception. Detonator works with EMP/ETH LP.
Yes, you read this correctly. You lock EMP/ETH lp in detonator, and for this, detonator pays you back EMP/ETH lp every day. And you are guaranteed to get 365% of your LP back. Which you can increase by compounding! This makes it possible to grow with the rising price of EMP, but also that of ETH. So as long as you believe that EMP and ETH will continue to grow, you will continue to compound! Your investment grows, which also increases your maximum payout. Cool right?
However, there is also a piece of gamification hidden in the detonator. Every day, there are 2 lotteries that you can win. The first is for the highest depositor of the day, and the second is a random winner. The price of the lotteries is attractive to say the least (253 lp's, about $21K). At the moment of writing
And another bit of gamification of the detonator is that at the end of the day your rewards go back into the pool if you don't hit the button yourself for claiming or compounding. This makes no difference to your credit, but it does make a difference to how long it takes to achieve your ROI. This is meant to let people log in every day, and to make sure you are involved in the project and your investment. And let's face it, it's also fun to try to squeeze out as many of your rewards as possible every day. Think of it like that lemon that you want to squeeze to the last drop...lol. Yes, it is a disadvantage if you don't live in EST time like me, the time for the roll-over is 1 AM my time (midnight UTC). And that's really not possible to get all my rewards every day, but in such a case I just think, well ... what I put in here, I did for the long term. And not to take it out right away. I'm also only compounding here to build up a piggy bank for, yes, for when? No idea for when, but in any case, this investment wasn't meant to take it out right away. Nothing is lost, it only takes a bit longer to ROI!
With which I immediately give a warning, only invest what you can spare in detonator because this is not a project where you quickly get your ROI, and once those LPs have been put in detonator, they are locked. You can't say after 5 minutes, "Oh, now suddenly a mega bill falls on my doormat, I have to take it out again". Once that LP is in the detonator, it is locked! You get an x percentage back every day, so whatever you have to claim or compound before the roll-over time (12 am UTC). If you don't do that, then it goes back into the pool, and you lost a day. No money, but an extra day until your ROI.
But why is detonator so good for EMP? We've already seen that Detonator can be of great benefit to you, provided you can afford to have that long-term vision. And of course the chance to win the lottery is still there every day. As long as you invest at least 0.15 LP or compound in a transaction you have a ticket to the lottery. And sometimes 1 ticket is enough. You never know!
However, Detonator is not only good for building passive income for you, it is also good for EMP. Because enough people get into the detonator, a lot of LPs is locked. And all LP that is locked ensures that there is much less liquid EMP on the market. But it also ensures that there is always sufficient liquidity, which makes it easier for investors to exit without major loss due to low liquidity. (You see this a lot on Hive-Engine, there is simply no liquidity in many projects, so you are forced to hodle, or accept a loss).
In the case of EMP this has been thought of and with Detonator there is constant liquidity, which grows every day. This makes the floor price of EMP stronger, and there are much less extreme price movements. And, not unimportantly, it is of course also important that the PEG of EMP remains better protected. Right, the PEG, which is so important for EMP to keep the boardroom printing, is held much better by the development of Detonator. And that makes EMP one of the most stable algorithmic projects you can find.
That all sounds very nice, but of course you want a more detailed explanation of how detonator works. Logical! I am not investing my hard-earned money just because someone shouts that it is so great. Before I decide to invest, I really want to have read at least a WHITEPAPER. And you can! I would also definitely recommend that you read this whitepaper. It will explain what Detonator is, what it does and how it works. And because the rules of the game are already clearly explained in the white paper and on the EMP website, I don't think it is necessary to describe it again in detail here.
But there is a difference between extensive and a little. So I will certainly not fail to mention some important points. Are you ready?
In case you have decided by reading this blog that you also want to build up a passive income. That you find the interesting option to invest with money that you can spare, and then have the certainty that you will get 365% back of your investment (compounding is growing and claiming is cash). Should you now decide that you want to invest in EMP and Detonator?
Then I say Congratulations and welcome to a growing family! Welcome to a family that is very dedicated, a team that works 10 strokes around to make this project succeed and grow. A team that has already announced a next step, which I will write about next time. Tomorrow the next part will be launched.
