As DEC continues to rise in value on a daily basis I have been thinking of ways to save my DEC while earning a passive income. The only way to currently earn passive income for holding DEC is to partake in liquidity pools (LP). However those who are familiar with LPs would also know that it comes with impermanent losses.
Short summary of impermanent loss is that when I put DEC into a LP I need to also put in another token in equal value. As DEC price rises I have a smaller amount of DEC while larger amount of the paired token. Overall I would have less DEC tokens if I withdraw from the LP. I do not want to lose my DEC but I also do not want to hold the token without earning any yield. Then I came up with a method of saving and earning DEC through the use of cards. I believe others who are playing the game are aware of too.
Presently the market prices of reward cards are some of the lowest in per the cards' DEC burn rate. Some cards as close to 1 : 1 priced per their burn rate! Since cards prices are near burn rate if I start purchasing them and level them to higher levels I essentially am storing my DEC inside the cards.
With the low DEC purchases I can max level cards and make the value of the max level card 105% the total DEC burn rate. In addition when I purchased the card I used monstermarkets to earn back 3% DEC cashback. In essence if I can get a near 1 : 1 price purchase of the card I am earning DEC when I max the card!
Furthermore I can rent out the card to earn daily DEC. Like for instance I have a group of max Vernari Seedsmith that I had purchased a while back at around 1.2 - 1.4 DEC burn rate. This means I paid about 20% - 40% more than the card's DEC burn rate. However stacking them to max level reduce the cost by 5% and I had 3% cashback from monstermarket.io
On top of that renting out the card daily at around 0.4 DEC I will gradually recover the added cost of the DEC I paid for on the card. By my estimate somewhere around 200 days or less to breakeven depending on rental prices. If the rental prices rise it will take less time to breakeven. The magic here is once I have breakeven on the price any other days I am renting out the card I am essentially earning DEC passively!
A couple of days ago I purchased a Lava Launcher and spent 5,328 DEC for it. The card was epic max level 6 and I got a cashback of around 160 DEC, to keep math simple. That meant in total I paid around 5,168 DEC for the card.
DEC burn rate of the card is 4,830 DEC so in total I overpaid by:
5,168 - 4,830 = 338 DEC
I then could rent out the card at around 2.2 DEC a day after paying fees.
338 DEC / 2.2 = 153.6 Days
That means around 5 months I would have the card paid off and breakeven in DEC value. Best part is I don't have to be holding DEC in my wallet without earning anything but be holding it as a card that I can continue to rent out to earn more DEC!
This method of storing my DEC in cards and then earning DEC through renting the cards out will take a while in order to see a profit. Yet its not impossible to come out ahead and in fact since the price of DEC continues to rise the likelihood of buying a card closer to a 1 : 1 DEC burn ratio is getting higher probability.
I only started doing this in the past week as I watch DEC price appreciate and been looking at ways to store my DEC without losing any. This is how I am going to approach moving forward on holding DEC as I am a long term investor in the game. Of course do this at your own risk as the drawback mainly is if DEC price falls so will be the value of the cards. Invest at your own risk.
Until next time thanks for reading!!!
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I have plenty of other cards for rent! Just go on peakmonsters and check out the market place and if you are curious what I offer here is a link:
