Nodes as NFTs?
The node project Universe turns your node into an NFT.
It’s definitely one of the first projects to implement this and it’s pretty genius.
Historically when you created a node it locked the funds creating liquidity difficult. You really only received liquidity in the form of the rewards generated.
With Univ.Money you can actually trade those NFTs on NFT marketplaces.
While Univ Money was one of the first, other Node projects have already started to announce similar strategies with NFT nodes.
You can check out our video highlighting the investment.
Digital Farmland Investment
On January 25th the day of the Universe launch. We created 5 nodes.
Looking back, the investment was executed quite flawlessly.
We saw the hype around the project growing quickly. Nodes were getting purchased fast.
The reason why I say “flawless” was that we were able to ride the price wave.
After purchasing the $UNIV token. I took half and purchased the five nodes.
I hadn’t yet done my research on the project, I was more or less taking the advice of those that were hyping on Twitter and Discord channels.
The remaining half I held onto and sold over the next few days.
So essentially I was able to get 5 nodes, about 4 days after the project launched I sold the other half of $UNIV I purchased.
Since the price had doubled since my initial purchase, it was like buying those nodes for nothing at all.
I honestly hadn’t planned on this, it was only that I hadn’t done the research quite yet, that I wanted to provide a little liquidity for myself just in case.
It turned out the price jump allowing the investment return in just a few short days was too good to pass up.
What is a Universe Node?
Universe is a DaaS (Decentralized Finance as a Service) on the Avalanche network.
Claims of lifetime rewards and passive income up to 1,533% APR, NFTs, Sustainability & Metaverse in your pocket.
Similar to other node projects such as $Vapor or $Thor a daily reward is received with extra bonus rewards for compounding the earnings.
With such a quick and well-received launch the initial rewards were quickly reduced.
(As mentioned with other investments reward reductions for the purposes of sustainability are a really good thing, and we were happy to see this change)
Universe Node Rewards
Currently, you can expect to earn a little over 1% daily from a Universe node. The more you compound rewards the quicker you will increase earnings and bonuses.
It’s easy to see the benefit of compounding as the rewards can really grow quickly.
If you mint a node from scratch you’ll start at the initial Mercury tier.
What’s interesting is if you purchase a Node NFT on an NFT marketplace you can actually skip those days of compounding if you buy the NFT node that is already at a larger earning tier.
Universe NFT Nodes
When you mint a node at Univ.Money. You actually create an ERC-721 NFT that you can trade as you see fit.
This means you can buy and sell your node on NFT markets like NFTrade.com or ToFunNFT.com
Currently, ToFunNFT has made it easy to sort by the planets’ locked liquidity and has verified the project.
Buying on the 3rd party sites has it’s pros and cons.
- You could potentially get an undervalued NFT. If someone is selling their NFT for less than the price it would cost to Mint you could get a deal.
The issue is this works both ways, you could overpay as well, so you’ll want to confirm what the locked value is prior to purchasing.
- You can jump ahead in tiers. When buying an NFT the previous owner has dilligently compounded you can get your node earning additional rewards instead of starting with the basic “mercury” tier.
In the above example, we can see this NFT is selling for 1.85 AVAX, has a locked amount of 133304, and the tier is “Earth”.
So while it may be advantageous to jump right into the Earth tier which earns greater rewards.
With the current price of $UNIV, you could buy the same sized locked amount for less than half of the asking price of 1.85 AVAX.
Finding Undervalued UNIV NFTs.
The best way I have found to find undervalued UNIV nodes is to use NFTrade.com. While the project isn’t verified you can still confirm the contract on Snowtrace.
With ToFunNFT they make it easy to sort by locked value amount.
With NFT trade it’s not as easy as they don’t have an easy way to filter.
BUT if you are willing to put in the work, you can find a gem.
There is probably an easier way to do it, but the way I have found is to click on the Mint activity in NFTrade which takes to SnowTrace.
From Snowtrace.io you can see the locked value of the NFT.
When I’ve sorted by earlier mint’s I’ve found some NFTs that are selling below what it would cost to mint a new NFT.
The floor price on NFT trade is also quite a bit lower than on ToFunNFT which could potentially provide an arbitrage situation similar to our marketplace arbitrage strategy we outlined in our blog post here.
When buying and selling on the third-party marketplace. A 15% commission goes back to the Treasury where Universe proceeds to continue to buy back and burn more UNIV.
Overall Universe Investment Thoughts
So far we are happy with our Univ Investment. It’s been earning daily rewards and the project continues to make enhancements.
Since the launch not even a month ago, there have been dashboard updates to their app, node rewards updates, and other projects like mimiverse.finance which has launched to compliment the node project.
There is some locked liquidity for the $UNIV token. But at the time the project is not audited. Proceed with caution.
Similar to other node projects we will continue to follow the strategy of compounding and reinvesting node rewards into our digital farmland.
While one of the more risky investments, so far the nodes are paying off. Good luck, and do your own research!