Illuvium is a game coming soon
A few weeks ago I decided to buy into the games token ILV for the price of $700 and stake it into one of their core pools. I wrote this article explaining the game and what we can expect in the coming months.
I figured that it would be a good time to double back and let you know how things are going with this investment.
The game is not live yet
This is all still a speculative / defi position to be in at the moment. There is no gameplay as of yet. Yesterday, their was a trailer released which showed actual gameplay footage. you can see that linked below.
From the looks of it, it looks like it is going to be a very cool game. One that will compete with the big games out there today. The big difference is that this one will pay you outright. No need to twitch or sell in-game assets through classified ads. Blockchain gaming is a real game-changer! (pun intended).
The ILV token
Since purchasing the token, I have seen some pretty good gains in the valuation of the ILV token. I purchased it for $700, after waiting for a dip in price that never came. I was watching it from sub $500. The ILV token is currently valued at over $1000. The trailer I linked above was released this weekend and could be a reason for the most recent pump in price.
This is a token that will play a role in governance moving forward and can also be used in game.
Staking is the real beauty
I have been staking my ILV on the illuvium website in the sushi swap core pool. It is a 50/50 pool pairing ILV with ETH. In order to get rewarded by the game, you must purchase LP tokens from sushiswap and then stake deposit them on the game's website.
In order to get things staked, it cost somewhere in the ballpark of $300 in gas. That being said, if you plan on staking ILV, it is not worth staking small amounts unless you plan on staking for the long haul.
What does the staking reward look like?
In the 17 days of staking $4800 worth of LP tokens, I have farmed $542 worth of ILV! That seems to be somewhere in the neighborhood of 242% APR if this trend continues. I kept my stake flexible, meaning I can take it out at anytime. If you lock it up for a full year, the APR will double. That could be an option if you see yourself going hard on Illuvium. I wanted to farm a good chunk while still being able to make moves if things start to escalate in the crypto-sphere. Which they could at any time.
Staking rewards are locked
You cannot take your ILV to market for 12 months. You can claim the ILV as sILV as use it in game. So, this kind of APR is not really up for grabs to all of the DeFi apes. This kind of APR is on the table for anyone who plans on hunting for monsters when the game goes live. The more money you have in the game, the more you can spend on supplies and travel to catch all of the rare and soon to be expensive monsters.
Conclusion
Don't ape into this lucrative APR without planning on playing the game. If you want to capitalize on some great APR's, there are lots of great options that you can find quite readily on all sorts of Defi platforms. Cub finance can earn you as much as 216% at the time of writing.
If you plan on playing the game, this is a great way to farm some in game currency and get a leg up on the competition when the game goes live. I think the scope and magnitude of this project paired with the success of projects that go live on the Ethereum blockchain is a recipe for success. Combine that with the fact that pokemon has been very successful and this game has some similar elements to pokemon, this game should likely do very well.
It sounds way too expensive. I don't understand why anyone wants to deal with ETH for gas fees.
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It is expensive. But... in 17 days I have earned $550 in rewards from staking. So, it needs to be more of a long term investment and large to be worthwhile. This is the first real ETH project I have delved into for the reason of gas costing too much.
The ILV/ETH pools actually looks pretty attractive. Maybe I need to learn more about the game BEFORE it goes love. ;-)
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Ya, I rolled the dice with it. But my thought is that this game will likely end up like crypto-kitties (as it is an ETH game) and like splinterlands (as it is a collection power game). I see it being successful. The 12 month lock on rewards is the draw back (as is ETH gas), but it likely will be set me up to at least get a good stable of rare aplha monsters before the masses flood in and moon the market. That is my hopes/speculation. My stake isn't locked up, so if everything goes to the moon in a few months, I can pull the plug on my farm and still have the rewards I farmed when the 12 months is up (or if I choose to use it in game when it goes live).
I read the whitepaper and looked at it pretty hard before I bought in... but like I said, I waited to pull the trigger and ILV was up ov er $200. I think there are a lot of ILV bulls joining the party.
i have also seens the ads for the game. isn't it a solana based gaming?
No, it is Ethereum and will be ran on the immutable X layer 2 sidechain. So, there will be no gas fees to play but I am sure there will be some gas fees to fund your in game account.
This looks so cool on the screenshots but I wait until I see the game before I make any financial decisions.