BluDAC is a platform that allows you to stake your LP tokens from WAX and earn rewards in BLU. It's gives incentive for users to provide liquidity to different tokens on WAX which helps everyone win in the end. The first 30 days, there have been 23 pools with 5 million BLU each. This 5 milion BLU is split between all the LP stakers daily and the last day is tomorrow. What happens next? I dunno. Time for some thoughts. Note: I'm a degen and not a financial advisor. strap in.
What's Coming
Ok, so I have a good idea of what's going to happen next with BluDAC so I'm trying to decide how to play it. I've heard in a couple interviews and seen a few tweets that indicated once these pools end tomorrow... There will be 10 pools that remain (maybe) and those pools are going to be the 10 pools with the highest liquidity (I think). There is also use case for BLU being integrated into the game (it's kind of a game) for the second month. These use cases come in the form of fees. Fees to stake and unstake LP tokens, fees to create pools, etc... Here's how those fees will be used.
I love that it will be fully transparent. Most projects don't have much transparency at all. You'll be able to track fees and how they're used on the blockchain to verify that 25% got burned. The other use cases are NFT staking and Community pools. Community tools is going to allow anyone that has a BluDAC membership staked to create a pool and fund it with tokens to be distributed. I love this. Ape like lol. We already know there's going to be a NEFTY-WAX pool that rewards you in NEFTY. This is a pretty damn cool concept. Then there will be BLU-NFT pools where you stake BLU and an NFT to earn BLU. Where the hell else can you do that?!
There's also going to be a fee to harvest your BLU for everyone so again, more reason to buy BLU. They let the community decide via Discord voting. Sick. Looks like it's going to be $1 for staking, unstaking, and harvesting. Damn that's gunna generate some fees. BUUUUUUUURRRN!!!!
They also asked via Discord vote if they should impose a Whale Tax. What is Whale Tax? I'm not sure but it seems to be an additional 1% on top of flat fees. Huh. Well fuck that just means more BLU is gunna be burned in the long run.
They said something here that hit different. This project belongs to the members. It is a true Decentralized Autonomous Community that's leaving most decision making up to us. Maybe you'll have to stake BLU to vote in the future. That would be cool as fuck.
Strategy
I really don't know how I should play this. I decided to unstake all my LP tokens today because there is a 3 day vesting period. I'll get all my LP tokens and in 3 days and I can rearrange the funds as I please. The pools end tomorrow. Not sure exactly when new pools will start but I wanted to try and get in day 1. Here's where I'm conflicted. I recently shared that a lot of the BLU supply was moved to Polygon and showed how to farm BLU. What I'm thinking is go ahead and move 50% of my stake to Polygon for that 270% APY and leave the other 50% for the new pools on WAX. Withdrawing my LP tokens now also avoids the fees that could be implemented after tomorrow. Big brain moves over here lol. Moving funds from WAX to Polygon isn't easy. Maybe I'll write a guide.
What's your plan? Are you on BluDAC? Are you just sitting there confused?
lemme know.