Stadium Arcadium’s Super Large Dividends
Hey everyone! I just wanted to take some time to discuss the relative size of the ownership benefits you get with Stadium Arcadium.
Throughout crypto history and business history as a whole, we have seen many different schemes to distribute benefits to fractional owners. In general, the rates of cash dividends one receives from traditional stocks trend in the low single digits in terms of % per year. It depends on sector, but you are looking at somewhere between 2% and 5% per year on average IF YOU GET ANYTHING AT ALL. But of course many companies, even huge ones such as Amazon, never pay any dividends at all.
No dividends at all is also a norm in crypto. Although staking benefits are becoming the norm, most yield tokens yield only more of themselves. That has been true from early attempts like DASH and other masternode coins to the majority of yield farming tokens today. In order to make a profit on most yield farming tokens, you must dump them.
There are other yield farms that have attempted to bring dividends to yield farming, but almost none of them have had many benefits for investors. These schemes usually involve the farm runner opening a pool where you deposit native shitcoin and some real coins (USDC, WBTC, WETH, MATIC, etc.) trickle out. The problem with these pools is that they are under centralized control and are ALWAYS configured to pay out only a small fraction of what the farm took in in deposit fees. No matter what the fraction is, the arrows of money always point from depositors and towards the farm runners. Why? Well, I’m glad you asked. The answer is because in order to gain access to those yield tokens that you can stake in dividend pools, you always have to pay more than you can get in dividends.
The one actual, honest attempt to provide dividends in yield farming was by Augury Finance. But they recently came out with a tweet stating that their lifetime dividends distribution had been $1.3 million over their lifetime:
They speak about this in terms of bragging rights, but let’s do some back-of-the-napkin math. Augury had $50 million deposited on its first day, but its dividend system was broken. Besides not paying out enough, and besides the team raising $2 million and providing only $1 in liquidity, Augury initially calculated its dividends once a week on Friday, resulting in a massive weekly native token dump after the distribution was calculated. However, they still got $50 million in deposits almost right away.
If Augury received $2 million in presale money and $2 million in deposit fees the first day, $1.3 million in lifetime dividends does not seem high to me. Actually, it seems low. If Stadium Arcadium receives $50 million in deposits, we will distribute $1.5 million of the $2 million in deposit fees IMMEDIATELY to MYFRIENDS stakers. We will also be transferring $166k in recovered Layer 1 liquidity money to MYFRIENDS stakers before farming begins. Therefore, if we get deposits equivalent to Augury’s, we will distribute at least $1.67 million in total dividends by the first day of farming. Therefore, we will have exceeded Augury’s total before getting started.
The numbers that are starting to come in are proving that our benefits really are amazingly huge in terms of both amount and percentage. And best of all, the juicy USDC benefit makes it so you get profits with no guilt. In addition, the transparency and, frankly, the overall generosity of the system make this more of an enhanced ownership experience than you can get anywhere else.
Just a reminder: our presale raise has allowed us to look towards expanding the team, and we intend to bring in new income streams to be distributed 50% to MYFRIENDS and 50% to ARCADIUM price support. So we hope to become a self-sustaining platform that is no longer even dependent on deposit fees. But of course, deposit fees are profitable, so we welcome them, because our ultimate goal is to increase owners’ profits.
Of course, we expect to see more farm deposits in the coming days, so keep an eye on our returns! Our early total value locked (TVL $10m+) and total native liquidity (TNL $1m+) show extremely high interest, and we are so grateful for your support of Sugandese Tokens!