Dive Into DeFi: Next on my Meal Plan: Kebab Finance

Kebab Finance has put together a unique yield farming opportunity, and I’m obviously excited to get a strategy running on it. The team appears to be aggressively building, and I am looking forward to what they put out next. 

By
Ben Antes
on
February 14, 2021
Category:
Dive Into DeFi

Introduction

I have a part two for last week’s article I still need to write, but I wanted to provide an opinion piece on Kebab Finance quickly. I’m pretty stoked about this one. 

Disclaimer: Do your own research; I do not know anything about the team. Manage your risk, and don’t get crazy. This is not a recommendation of investment, only my analysis of the economic model of the platform. 

If you skipped my disclaimer, please reread it. This is solely an opinion piece on why I flipped bullish on Kebab. The project is relatively new and not market-tested, buyer beware. 

How It Began

When I first visited the Kebab Finance website, I read their claim about offering superior yield farming. Sign me up! In reality, I liked the liquidity pairs; they are powerful as it is a way to further diversify my portfolio, so I got excited about it. Now that about a week has gone by, that excitement has only grown. I’ll tell you why:

Unique Kebab Pairs

I love unique pairs. You can currently pair Kebab with BNB, BTCB, and BUSD. That is super neat but this also has some fundamentally attractive attributes that will only make more sense as I explain their current ecosystem. For starters, it is excellent to diversify positions within my LP portfolio. Having Kebab exposure shared with BTCB is pretty awesome, allowing me to compound Kebab and BTCB. I also appreciate the BUSD pool for this same reason. I love BNB, but I have A LOT of BNB exposure. 

These three pairs will also create arbitrage opportunities. The Kebab value in each pool will fluctuate, allowing traders to arbitrage across all three pools. This will generate more Kebab transaction volume, increasing the burn rate over time (burn not yet implemented). If liquidity pools deepen, more Kebab is needed to arbitrage the pairs, leading to more significant burn and transaction volume. This is incredibly important due to the next feature…

MVB Program

Per the most recent medium post put out by the Kebab Finance team, Kebab was accepted into the Binance Most Valuable Builder (MVB) program. This program gives the project a share of their transaction gas fees as a reward. Kebab is sharing a portion of that in a staking pool to earn BNB with platform users. In simple terms, Kebab is creating a volume-based profit share system for Kebab holders. I’m hoping to see the Kebab pairs generate increasing transaction volume, leading to a greater BNB reward, more Kebab stakers, volume, and burn. 

My Strategy

I’m generally a reasonably conservative crypto DeFi investor (if that is a thing), so I am going to run my usual playbook on this. I am currently providing liquidity to some pairs I love: BTCB / ETH (!), BIFI / BUSD, USDT / BUSD, and ETH / BUSD to earn Kebab. I am then LPing my earned Kebab and tossing it into a vault to auto compound. I’m not risking much on Kebab itself, but rather the profits from the pairs above that I am thrilled to hold. I am hopeful that my analysis is correct, and the platform grows, pushing the Kebab price up. Yields are extremely lucrative right now, and I am pretty pumped about this ecosystem. 

Conclusion

Kebab Finance has put together a unique yield farming opportunity, and I’m obviously excited to get a strategy running on it. The team appears to be aggressively building, and I am looking forward to what they put out next. 

Again, take some time to learn about the platform and familiarize yourself with the team. Never risk capital you cannot afford to lose, as you never know what could happen. This goes for direct investment to Kebab or LP’s within their farm. As always, you do not have to buy a token they give you for free. Nothing wrong with compounding returns and seeing how the platform grows. You can be amazed how quickly positions can grow if the project takes off. 


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Ben Antes

KCrypto is BSC News' Financial manager and one of the four founding team members. KCrypto self-proclaims himself as a yield farming "guru" who finds himself researching the latest De-Fi projects.

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