I have written similar articles before, but it was on launchpool at the time, so the revenue was relatively low and few people read the articles.
Before you start watching, I suggest you like, collect, comment, and follow me so that you can watch it again next time.
Portal: https://www.binance.com/zh-CN/feed/post/21011
For more information about SPACE ID, please refer to my previous article
Portal: https://www.binance.com/zh-CN/feed/post/315761
The snapshot time for this IEO is 5 days, but the previous launchpad project $HOOK took a snapshot for 7 days. The 5-day snapshot undoubtedly reduces the cost of hedging and getting free IEO.
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There are 3 ways to get $BNB from IEO
Straight to the point
Method 1️⃣: Buy $BNB in spot and short $BNB in futures. 🈳
The advantage is that you can avoid the risk of $BNB falling. If you hold BNB for the long term, you don't need to consider hedging $BNB. However, shorting BNB also has certain risks and losses, that is, the funding rate. It is well known that the rate of $BNB contracts has been at 0% for a long time, but when a large number of people short $BNB, the rate will become negative, that is, those who short need to pay a certain amount of funding fees to those who go long.
Then our expenses are mainly the funding rate for these 5 days. The funding rate for the first day on the 17th is about 0.27% for the three time periods, so the 5-day rate should be about 1.35%. In fact, although the snapshot time of $hook was 7 days, the overall daily rate was about 0.2%, so I personally think that the amount of rate paid has not changed much. So you just need to make sure that the $BNB you get for hedging, and then take a snapshot to get the IEO quota, that is, the profit of $ID is greater than the interest you pay.
When the revenue > payment rate, we make money.
Portal: https://www.binance.com/zh-CN/futures/funding-history/perpetual/1
Method 2️⃣: Full-margin or single-margin leverage lending
In fact, the method is relatively similar to method ①, except that you do not need to buy spot and short contracts, you can directly borrow $BNB through collateral
We see that the hourly interest rate reaches 0.0125% (V0), so we need to pay 0.3% interest per day, which is as high as 109.5% annualized. Of course, we only need to pay for 5 days.
Then we just need to transfer the assets into the full leverage, then borrow BNB, wait for the snapshot, then invest $BNB, and wait for the distribution of $ID.
When the income > interest payment, we make money.
This operation needs to be done quickly because there are many people borrowing. Basically, after the news is announced, many people will still come to borrow $BNB with interest.
PS: The interest rate of full-position leverage is sometimes adjusted according to the supply and demand of loans, so you should always pay attention to it. For example, it has risen to 0.018% at present.
Method 3️⃣: On-chain lending
On-chain lending, such as XVS on Binance, is a platform with lending functions. You can pledge various supported assets to borrow $BNB. The current annualized lending rate is over 100%.
After pledging assets, borrow BNB, withdraw to Binance, wait for snapshot, then invest $BNB, and wait for $ID to be distributed. However, problems often occur on the chain, and incorrect information may be filled in when withdrawing, resulting in losses. Therefore, for newcomers, Captain Lu recommends that you borrow $BNB directly in Binance.
Similarly, when earnings > interest payments, we make money.
This time, we mainly focus on Launchpad projects (HFT is a POOL project), and the interest rate will be relatively high. We will learn how to use Binance's functions to obtain low-risk $BNB, so that we can participate in new listings with low risk. The higher the return, the higher the risk.
Of course, no investment is absolutely stable. Investing involves risks, so be cautious when operating!
I am Captain Deer BNBVIP9. Follow me to learn more about the cryptocurrency world and increase your knowledge.
Travel through the bull and bear markets with Captain Deer, remember to follow, like and comment😘
PS: If you want to reprint, please contact me, BNBVIP9; any reprint without permission will be prosecuted.
