Minto is Launching Autofarming For those Who Want to Earn More
Minto is announcing the launch of a new feature that will allow users to increase their income automatically by accruing compound interest. Minto has developed a smart contract with an automatic algorithm for converting received bitcoins into BTCMT tokens and their subsequent staking.
What is Autofarming?
As you know, there are two ways to earn on the BTCMT token: trading and staking. According to statistics, 2.15 million out of 2.5 million issued tokens, or about 86% of all tokens, are staked. Thus, most BTCMT holders choose to earn on staking.
Staking can be compared to an investment bank deposit: you invest money, and after a certain time, you get a larger amount with interest. In case of a bank, your deposit is used to issue loans to other people and companies, while in staking you trade Minto tokens for mining power (1 token = 0.01 THs) used to mine BTC. While the tokens are staked, they are used to mine BTC at real mining facilities.
Since staking rewards are paid out daily, and users who wanted to increase the capitalization of their investments have been withdrawing these funds, converting them into BTCMT and staking them again. Some users did it daily, some weekly, and some monthly.
On December 20, 2021, Minto held a listing on MDEX. Almost simultaneously with this significant event, the BKSwap service became available for BTCMT in the BitKeep wallet, which is the recommended wallet for working with Minto DApp.
As a result, the Minto team decided to automate the capitalization of token staking and created the Minto Autofarming service, which does it in an automatic mode. When employed, all daily staking income is converted into BTCMT tokens and sent back to staking, thus increasing the return on investment.
How will profitability change with Minto Autofarming?
As an example, let’s calculate how the staking yield could change if we started capitalizing tokens with Minto Autofarming in Q1 2022.
Income per 1000 BTCMT staked tokens for Q1 2022, provided the daily conversion of BTC to USD at the current exchange rate, amounted to US$307, which corresponds to an APR of 61.4%. Annual Percentage Rate (APR) shows the estimated annual return from staking with simple interest.
Revenue for Q1 2022 with simple interest: $307/1000 BTCMT, APR = 61.4%
Let’s assume that a user converts the received BTC into BTCMT daily and immediately stakes them in addition to the already staked volume. In that case, if you initially own 1000 staked BTCMT, you could accumulate additional 153 BTCMT tokens in Q1.
If daily income increased according to the compound interest formula, then after the first quarter thanks to the growing base it would amount to $486, that is, you’d receive additional $179. In this case, you should use APY to estimate annual profitability. Unlike simple interest, compound interest is calculated daily and its amount is immediately added to the balance. Every day, your account balance grows a little, as does the interest. Thus, the APY would be approximately 97%.
Thus, automatic farming is 1.5 times more profitable than conventional staking, totaling 97% vs. 61.4%, respectively. Note that these figures are valid for Q1 2022. Given the growing complexity of the BTC network and rate fluctuations, profitability may change over time (up or down). However, it is obvious that auto farming with interest capitalization will always be higher in terms of profitability than regular staking.
In addition, automatic farming saves users a lot of time: it’s easier to press a couple of buttons than to do everything manually on a daily basis.
The Minto platform offers its own computing facilities to mine BTC. Owning the company’s tokens (BTCMT) is equivalent to owning the respective mining capacity. By stacking BTCMT, the token holders receive a daily portion of bitcoins proportional to their share in computing power.
The project’s team is a collective of people from Europe spread across the whole world. Minto is founded by entrepreneurs with years of mining experience, with their headquarters located in Dubai, the UAE. Minto notes that the approach used to mine Bitcoin is eco-friendly, as its data-center is powered by a hydroelectric power plant, which complies with the UN Sustainable Development Goals in the field of green energy. Using the energy of water, the plant allows to radically lower the carbon footprint caused by mining.
If you join Minto right now, you can still take advantage of the unique opportunity to buy BTCMT tokens at the best price. Start getting the maximum profits with Autofarming. Stay tuned, new updates are coming soon.