Baked Beans Miner: To bake, or not to bake, that is the question.
Today I want to share a project called the Baked Beans Miner, which is a part of the Crypto Bake House project. The protocol runs on the Binance blockchain and promises daily returns of up to 8%, which equals out to a whopping 2,920% APR.
When I first saw this dApp, I laughed, “How could something so stupid actually be legit?” So based on that logic, I put $100 in to see what would happen. Two weeks later, the money printer offers me almost $25 in daily bnb returns. Do I eat the beans? No, I “rebake” them and only “eat” my beans once a week (take a look at the dApp and you’ll understand). You might wonder why I’m just not enjoying the perpetual $20/day, well, let me explain…
The contract has a built in mechanism that reduces your daily return if you withdraw too often. Withdrawing rewards once a week, however, isn’t enough to trip the function. Next week, I will have already achieved my ROI, and the rewards will — hopefully — continue.
So, what is actually happening here? Let’s take a deeper look:
The project has been around since November 2021, so it’s nearly 7 months old. As of 15 April, the project has 28,000 BNB in TVL (total value locked) –that equals out to nearly $12 million USD. Most compounding projects like this start losing steam around the 3 month mark, however, this project is still growing every day.
One of our devs took a look at the contract. Boy were we surprised–this contract isn’t based on beans, it’s based on eggs! In fact, when I check my transactions on bscscan, it shows that I’ve been buying, selling, and hatching EGGS. Clearly this contract was recycled, which isn’t at all uncommon in this space, but boy did I feel betrayed.
All kidding aside, the contract itself is quite confusing. The dev fees are fairly low, 3% on each transaction. We tried to determine how they implemented rate reduction to reduce withdrawals, but we had trouble determining exactly how it’s calculated. There is a timestamp recorded each time you withdraw your beans, which is certainly connected to the beanRewards function. But how it exactly gets calculated is a mystery. There is also a function to nerf hoarding of rewards. It looks like after 5 days, the rewards are reduced.
After looking at this contract for a while, I realized where this contract was forked from. An older contract, simply called BNB miner, is almost identical. There are a few more features in the BNB Miner contract, but most notably it lacks rewards nerfing mechanisms. This is likely why BNB miner is practically dead, with only 1,146 BNB locked, and why Baked Beans Miner is thriving. Nobody wants to lose the rewards rate, so it forces them to continuously compound, which perpetually increases the contract value.
As I mentioned, the Baked Beans Miner is part of a larger project called the Crypto Bake House. The mother project recently released a token called Bean Chart ($BCT), which directly benefits the miner application and has staking features. Their road map extends through Q3 2022, and is somewhat vague. Besides projected growth and partnerships, the most notable goal is releasing Bean NFTs. If similar projects are any indication, the NFTs will likely boost rewards or have some other benefit.
It is also of note that clone projects are springing up on other blockchains. You will find a Spooky Miner on the Fantom blockchain, and a Ruby Miner on the Avalanche blockchain. I will not get into the details of these, but I will say that I’ve tossed a few dollars into these projects as well.
As always, do your own research, this is not investment advice. Are you ready to start baking beans?
Join the discussion on reddit, r/CryptoCraversLLC
linktr.ee/CryptoCravers
