EMP Money Strategic Foundation — Part 1
In my previous article, I introduced EMP Money and gave an overview of the ecosystem. In this article I will give an introductory overview of the strategy that you should adopt to optimally participate in the ecosystem. There are so many ways you can participate and no one forces you to do (or not do) anything but there is a key concept that you need to understand. If you’ve never been in a Tomb fork then this is very important.
Your Long Term Goal
Your long term goal should be to accumulate as much EMP as possible without selling it. The main way that EMP can sustainably trade at or over peg is by not selling it. To play your part, you can create EMP/ETH LP and stake it to earn ESHARE. The good news is that you can do whatever you want with ESHARE without harming the ecosystem or your bags. There are additional strategies but staking EMP/ETH LP on the farm to earn ESHARE is the core strategy.
What You Can Do With ESHARE
The primary use case for ESHARE is that you can stake it in the boardroom to earn EMP when it is trading over peg. The price of ESHARE will fall when EMP trades below peg because it is no longer earning anything. However, you have other options to the boardroom.
- You can use it to take profits. Instead of selling EMP you can use the ESHARE you earned to take profits. Holding on to your EMP while paired with ETH allows you to continue to earn ESHARE. Selling EMP will reduce (or even remove) this privilege.
- Pair ESHARE with BNB and deposit your ESHARE/BNB LP into Reactor.
- Swap ESHARE for EMP. You can use this EMP to pair with ETH to earn more ESHARE, purchase EBOND, purchase nodes, participate in Splinterlands, or place it in the single asset staking pool on GrowthDeFi.
- Swap your ESHARE for ETH. You can pair this with EMP you already have to create more EMP/ETH LP and increase your daily ESHARE rewards.
- Hold on to your ESHARE in anticipation of a higher price.
Why Selling EMP Is A Bad Idea
Before I continue, I want to be clear that selling EMP is allowed and there are no taxes. If you really need the money then you are free to do whatever you want. However, if you are still in the protocol after you sell some EMP, you are not only hurting the protocol but yourself also. This is true of any peg token for Tomb forks.
Below are some examples of how you are harming yourself if you sell EMP:
- If you are farming the EMP/ETH LP, you are not only reducing the value of your LP, you are are also reducing the value of any ESHARE rewards in the farm.
- If you hold ESHARE in your wallet, you are reducing the value of that ESHARE.
- If you are in the Detonator or Reactor, you are contributing to a reduction in the Daily Burst meaning your ROI takes longer to be realised.
- If you have nodes, the daily rewards are reduced which means it will take longer to realise your ROI.
As you can see above, selling EMP while you are still in the protocol is just a bad idea. Selling EMP should be your last resort.
Final Thoughts
Just remember that the idea behind EMP Money is to hold on to whatever EMP you have. If you understand this important principle, any strategy you choose to follow will be beneficial for you. If you do get yourself caught with an excess amount of EMP from nodes or the boardroom, try to fix the problem rather than selling. In the next article I will go over some of the alternatives you have to selling your EMP and give some examples of what not to do.
Disclaimer: None of what is written in this article constitutes financial advice. Investing in cryptocurrencies, and in particular decentralised finance, is high risk. What I write is not a recommendation to invest in the projects I discuss. I am not aware of your personal circumstances. Only invest what you can afford to lose. Make sure to do your own research rather than relying solely on my content.
Links
EMP Money Homepage: https://emp.money/#/
EMP Money Docs: https://empmoneyv2.gitbook.io/emp.money/about/introduction
EMP Money Detonator Link: https://emp.money/#/detonator?ref=0xa7AC3Ea7D8dEC039F459934Cb0d0152a2e2B28f1
Telegram Group: https://t.me/empmoney
Discord: https://discord.gg/9wDDa26Z6e
YouTube: https://youtube.com/playlist?list=PL2ZUX77BqsmWkeOisjYEIeIWs6egmmVBd