Strategies

Potential strategies to reference as a quick-start guide to using the Bomb Money protocol.

Congratulations! You've made it this far. Now that you're ready to start using Bomb Money to earn some great yields, let's look at some basic strategies you can follow as a framework for your own investment strategy. We'll break things down by complexity and relative risk, so feel free to mix and match elements according to your own level of experience, investment goals, and risk tolerance.

The strategies described here are intended only to illustrate how to use the Bomb Money protocol and do not constitute financial advice. Always do your own research and make your own decisions with regard to how you use Bomb Money.

⭐BOMB-BTCB Liquidity Pool Autocompounding Vault Strategy

This is the most simple and consistent strategy for new users, as it requires the fewest steps and the least effort to maintain (as in, zero effort). This option maintains the maximum amount of exposure to Bitcoin (BTC) while still earning incredible yields that automatically compound every two hours.

If you're already holding BOMB and BTCB in your wallet and know how to throw that into the liquidity pool for LP tokens, you can do that manually if you like. (Refer to the Provide LP section for instructions on how to do this if you are interested.) But, our autocompounder found at BOMB MAX vault can also do this automatically for you by "zapping " various assets directly into the BOMB-BTC pair, which is the method we recommend.

Semi-active Restaking Strategy

Once you have familiarized yourself with the Bomb Money protocol and how everything works, you might be interested to try a more active and advanced strategy to diversify your passive income streams and potentially increase yields.

One way to do this would be to buy some BOMB and pair it with BTCB to receive BOMB-BTCB LP tokens. (Refer to the Provide LP section for instructions on how to do this.) You can then stake those LP tokens in our Farms to earn B2SHARE, which you can then withdraw on a regular basis and stake in the Boardroom to earn additional BOMB when above peg and the Boardroom is printing.

What you do with the BOMB you earn then is up to you. You could stake it for xBOMB, sell it immediately on the open market, or pair it with some fresh BTCB and deposit it into the farms to earn even more compounding returns on those rewards.

More Complex/Active Strategies

As the Bomb Money ecosystem grows, more complex, advanced, and active strategies will emerge. Once you fully understand the protocol and how all its mechanisms interact, feel free to experiment.

Keep in mind these fundamental aspects of the protocol when you are thinking about how to most optimally balance your portfolio:

1. The Boardroom only prints for B2SHARE stakers when the peg is above 1.01.

2. The higher BOMB is above peg, the more BOMB is printed for B2SHARE stakers in the Boardroom. This makes staking B2SHARE more attractive the higher above peg we currently are.

3. Conversely, B2SHARE becomes less attractive as BOMB dips below peg.

Ultimately, the goal of an advanced user of the protocol should be to help maintain the peg. Doing so will result in the greatest rewards for not only yourself as an individual, but for every person participating in the protocol as a whole.

Strategically rebalancing your portfolio to apply buying pressure to BOMB when below peg, or selling pressure when above peg, can be a very profitable strategy, but is not without risk. As such, this type of strategy is for experienced users only.

The easiest way to earn consistent yields with Bomb Money is always in the autocompounding vaults over at BOMB MAX. Everything they do you can do manually, but require significant time for monitoring and gas fees for every transaction.