DRIP gives 365% ROI from taxes, not inflation
Drip Network, a DeFi protocol on Binance Smart Chain, is seeing continued interest and surging user activity as other decentralized finance dapps on BSC are suffering. While most DeFi dapps on BSC have seen a significant decrease in active users month over month, Drip Network has doubled its user base.
In the last 30 days, Drip has attracted 98% more user wallets to its platform, taking the number to over 53,000. Those wallets drove over 843,000 transactions, generating more than $167 million in volume. Interestingly that makes an average transaction in the last 30 days on Drip worth around $200.
Moreover, as other established DeFi protocols on BSC such as PancakeSwap, ApeSwap, and 1inch see a decrease in wallets connecting to their platforms, Drip has grown almost 100%, bucking the trend on BSC.
What is Drip?
Drip is a DeFi protocol on Binance Smart Chain that promises users daily passive income.
The core reason for the growth is that Drip is not like standard finance applications, instead Drip Network promises a passive income that allows users to acquire 1% every day, or 365% every year. That platform funds the rewards from initial deposits by other users.
DRIP is a stakeable cryptocurrency with scarcity credentials and zero inflation that essentially allows owners to get money through two different options:
The faucet is a low-risk way to earn through the DRIP token that operates similarly to a high-yield certificate of deposit by paying out a 1% daily return on investment. Here, users can withdraw their earnings to an external wallet and earn extra directly through referrals that make initial deposits. Plus indirectly, from the network created through referrals, which can run 15 levels deep.
In addition, there’s the Reservoir, a means where the community can provide liquidity or Drop. This implies that you are funding Drip by depositing BNB, which becomes a token referred to as Drops. The Drop is a BEP-20 token with a stable, non-fluctuating value and it is the Drip native liquidity pool token. Providing liquidity fetches you reward from fees typical with liquidity pools and increases the price of your DRIP stake, but be aware that a 10% sustainability tax applies whenever a deposit is made or removed.
In plain English, a user can deposit a certain amount of DRIP into the Drip Network. For example $10,000. The investor does not get this $10,000 back. Instead, they earn 1% of it back in DRIP every day. It takes approximately three and a half months to get the initial investment back. After that, whatever it produces belongs to the investor.
How can this project keep paying people?
DRIP rewards are paid out from a 10% tax on all transactions. That’s right when putting in that initial $10,000, 10% of it goes to a tax pool, so you only end up investing $9000. Initially, this doesn’t sound nice, but everyone gets taxed on each transaction. That’s how the investors get paid every day.
So in summary, you put in $10,000 (which comes out to be $9000), and you get paid back 1% of that every single day in DRIP.
The mechanics create a situation whereby DRIP has relative price stability because of taxes on deposits and withdrawals, the fact that you can only draw out 1% a day, and a whale tax. That’s part of the design—no multi-millionaires manipulating the market cap.
We can look at the most recent BTC price dip to prove this. On January 22, 2022, BTC went briefly below $34,000. But DRIP remained unchanged and started to increase. Increasing more than 46% in the last 30 days.
One concern is with those who may choose to compound the money repeatedly and never take profits could be taking much bigger risks. Namely, because a user could repeatedly compound for a year and never take any profits in this scenario. Then the price of DRIP could potentially tank, and those investors would be left with nothing.
Drip in Summary
Drip represents a unique opportunity for those with bigger appetites for risk. Ultimately, a wallet is finished when it reaches 365% of a deposit. Therefore a user can invest $1000, not compound, and eventually walk away with $3650 minus any taxes and fees. Those interested in finding out more about Drip can read the Whitepaper here.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds ETH, BTC, AGIX, HEX, LINK, GRT, CRO, OMI, IMMUTABLE X, GALA, AVASTR, GMEE, CUBE, RADAR, FLOW, FTM, BNB, SPS, WRLD, ATOM, and ADA.