How I Earned 5x More ALGO this Governance Period
Learn how you can earn more than your Governance rewards with DeFi
Welcome back to the Club, gov!
Governance period #3 was a game changer in many ways for both the Algorand ecosystem and the investment community at large.
For the first time, our ecosystem had the ability to unlock our Governance liquidity by committing to Governance through protocols such as Algofi, Folks Finance, and GARD.
For the greater markets at large (crypto & equities), we experienced a crash unlike anything we’ve experienced since the COVID crash two years ago.
And through calculated planning, I capitalized on both to earn a 37.5% APY this Governance period.
It might sound unachievable, but it wasn’t.
Let me show you how I did it.
The Goal
This all started with one goal: earn a full year's worth of rewards in one Governance period.
You see, when I started to plan for the upcoming Governance period I estimated my rewards based on the traditional amount of ALGO I would commit and the estimated APR at the time:
But as mentioned above, there are now ways to unlock a portion of our Governance stake. So if I were to use these new products, I would be able to commit an additional 4,000A to Governance.
With this addition, I estimated my Governance rewards would increase by about 70A (after fees):
Projecting that out over a year, I’d earn ~1,000A from Governance alone. While this isn’t bad by any means – especially for relatively passive income – I ultimately want to use Algorand as my main investment vehicle over the course of the next decade.
And that includes earning more than 7.2%.
That’s when I decided to create a plan that would yield me ~1,000A in one quarter.
I knew it was a lofty goal, but I felt confident in my ability to create a plan that would deliver.
Let’s go over that plan next.
Gov Tip: This is for Alpha Club members only. Learn how to become confident in your DeFi game for less than a buck a week here.