There’s no doubt that DeFi yield farming provides a great way to earn passive income, but it can be difficult to get started. This is due to the high barrier of entry for new users, especially on DeFI 1.0 and 2.0 networks like MakerDAO and Olympus DAO.
However, a new trend is emerging in the space that seeks to solve this problem by improving on the lapses of the current systems. This new wave is led by Multi-Chain Capital (MCC) and its MCC token.
This article will take a deeper dive into what MCC is trying to achieve and how they plan to do so. So if you’ve been wondering whether or not to invest in MCC tokens, then read on!
What Is Multi-Chain Capital (MCC)?
Multi-Chain Capital (MCC) is a DeFi 3.0 platform that aims to make it easy for people to earn returns on their investments. The idea behind MCC is simple: instead of investing in one blockchain and hoping that it grows enough to pay off your investment, why not spread out your capital across many different blockchains and reap the rewards?
Multi-Chain Capital achieves this by allowing users to purchase its $MCC token on Ethereum or Binance. It accumulates these funds in its treasury and bridges them to blockchains with lower gas fees, where it invests them in yield farms and auto-compounding vaults.
Mult-Chain Capital hopes that as the project and its popularity increase, it will be able to present investors with even more possibilities to invest. One way it plans to do that is with the introduction of MultiNodes. We’ll cover that later in the article. For now, let’s talk about the tokenomics of MCC.
Understanding Multi-Chain Capital’s tokenomics is important because it helps us understand the project’s value proposition in terms of market cap and long-term sustainability.
Here are Multi-Chain Capital’s tokenomics
- The $MCC token supply has a max supply of 1,000,000,000,000 currently has self reported circulating supply of 1,786.72B MCC (check current numbers here)
- 35% of the total supply was initially locked in a black-hole address, making the token hyper-deflationary.
- Tax on buy and sell transactions is set at 6%, one of the lowest among DeFi3 projects.
- 2% of the tax is reserved for existing holders of the token via reflections.
- The remaining 4% is spent on Multi-Chain Farming to increase yield farming treasury and $MCC token buybacks.
What are MultiNodes?
To better explain how MultiNodes work, we need to first discuss how nodes work within the DeFi ecosystem.
Cryptocurrency nodes are computers that communicate with each other over the network. The computer or node serves as the backbone of the network, helping to validate and relay transactions. Plus, it gets a copy of the whole blockchain.
Running a node comes with excessive fees, making it difficult for the average DeFi user to run one. Furthermore, they’re not portable enough to trade or transfer from wallet to wallet, making it difficult to earn more passive income through the sale of nodes. Multi-Chain Capital solves all of these problems by introducing MultiNodes.
How MultiNodes Work
A multi-node is basically a portable node that allows owners to easily sell their nodes to someone else through non-fungible tokens (NFTs). By leveraging the technology, MCC can create a secondary marketplace where anyone can buy and sell their own nodes.
Most people think of JPEGs when discussing NFTs, but that’s just one example of what NFTs can be used for. Nodes become fully tradable NFTs by filling their metadata fields with information such as sale price, tier, and revenue rate. Their portability also makes them easily transferable on the secondary market. So having the NFT in your wallet allows you to claim MultiNode benefits, and transferring it to another wallet allows the new owner to claim future prizes.
Cost of Setting up a Node and potential ROI
A user can generate a node by supplying both stablecoins and $MCC. The amount of investment determines the node tier and return on investment. Here’s a list of available tiers as of the end of Feb 2022:
- PRESIDENT: $5,000 in Stablecoin + 108,300,000 in MCC. 1% daily / 365% APR
- DIRECTOR: $2,500 in Stablecoin + 54,100,000 in MCC. 0.8% daily / 292% APR
- EXECUTIVE: $1,000 in Stablecoin + 21,700,000 in MCC. 0.65% daily /237.2% APR
- BANKER: $500 in Stablecoin + 10,800,000 in MCC. 0.58% daily / 211.7% APR
- ANALYST: $250 in Stablecoin + 5,400,000 in MCC. 0.5% daily / 182.5% APR
MCC Farming Strategies
MCC focuses on three main strategies for increasing yields. They are:
1. Focus on Constant and Safe, Stablecoin Returns.
Multi-Chain Capital is primarily concerned with ensuring the stablecoin investments they make are extremely liquid and well-supported by assets or collateral. They focus mainly on the three biggest stablecoins, $USDC, $DAI, and $USDT, since they believe they are the most stable. The stablecoins are then placed in Farming Opportunities or Interest Bearing with APYs ranging from 7% to 20%.
2. Focus on Small IL (Impermanent Loss) Farming Assets.
Approximately $77,000 is invested in the $FTM and $TOMB vaults, both of which have a solid price and liquidity situation. As a result, IL is reduced by pegging $TOMB to $FTM, which ensures that both assets stay stable. Over $15,000 in profit has been made so far.
3. Focus on Re-investing and Compounding Investments
For a long-term view of the market, while increasing the treasury balance, they compound earned tokens or bet earned tokens for further reward.
Staking $BOO for extra tokens is an example of how they may use their earnings from SpookySwap to gain an additional $FTM, which they can then harvest and reinvest. This also permits them to maintain their $BOO tokens if they believe the project’s worth will rise over time.
About $MCC Token
$MCC is the native token governing Multi-Chain Capital. As of writing, the token traded at $0.000019 with a 24-hour trading volume of $462,078. While it ranks at #3418 on CoinMarketCap, there’s no information about its live market cap. There’s also no information on its circulating supply, but it has a maximum supply of 1,000,000,000,000 MCC coins.
How to Invest In Multi-Chain Capital Token
Investing or purchasing the MCC token is simple, but you can’t buy it directly; you have to trade another token for it. This is referred to as “swapping.” You can easily get MCC tokens using Ethereum or Binance smart chains.
If you want to invest in Multi-Chain Capital, you need to first purchase some Ether. If you already own Ether, then follow the steps below to swap your ETH or BNB for MCC tokens.
- Visit the main site: mchain.capital
- Click on either Pancake swap or Uniswap
- Import the token
- Connect your metamask wallet to either the Pancake swap or Uniswap
- Choose the token you would like to use to buy MCC
- Change the following settings before concluding the purchase or exchange
- Slippage tolerance to 10%
- You should change the transaction deadline to 1 min
- Input the amount of MCC you want to buy
- Click Swap
- Confirm swap
- Confirm transaction fee
Is MCC a Good Investment?
The Multi-Chain Capital (MCC) cryptocurrency has recently seen a growth in both its price and the number of investors and holders. It is still very important for people who want to invest in the coin market to do some basic research on any token or coin they choose to invest in. This enables investors to make the best investment decisions and avoid falling victim to scam tokens prevalent in the crypto market today.