Disclaimer, Curious Cosmonaut did not receive any compensation for the paper. After their team reviewed the article, we received after asking 1 NFT to be used for the giveaway. Curious Cosmonaut has no affiliation with the team, and this article, like others, is to bring information to Cosmonauts.

Overview

YieldBotz is an NFT project that launched on Stargaze as a way to hold NFTs and earn passive income. It resembles the idea of an investment club. The YieldBotz team takes 100% of the proceeds from their mints, and they invest those into various strategies. They then take 70% of the rewards earned and airdrop them to holders of the NFTs for passive income. Another 15% of the rewards are re-invested into new strategies to improve their earning streams. For royalties today it is helping reimburse the founders for the artwork but in the future, they plan to re-invest in those royalties as well.

YieldBotz already has done one collection that raised $4 091 to test the market.  YieldBotz 1 invested $5 091 (more than what was raised) After a successful launch, they are investing in a second collection minting right now. This collection aims to raise $25,000. Each collection will be invested with its own strategies.

YieldBotz is a 555 NFT collection, and YieldBotz 2 is a 2020 supply NFT collection. YieldBotz 2 is currently available for mint on Stargaze for 1,000 STARS.

Utility and Chain

The utility for YieldBotz is straight forward they are investing the funds and will pass on passive rewards. If a user would like to speculate on this beyond wanting to hold the NFT to be part of the community, there are also strategies for that.

According to their team project, 1 YieldBotz targets 23 STARS per NFT per month. For YieldBotz 1 though, they announced recently that the first month is looking to be around 36 STARS, and YieldBotz 2 targets 68 STARS per month in rewards. So if users like the art and want to hold the NFTs to be part of the community, the yield may be a bonus.

Roadmap

According to Juan of YieldBotz, they would like to do several more collections. They believe the more money they raise, the more opportunities they can open up that were not available previously to smaller investors. This is a classic investment club strategy where users can partake in as low as $20 into a fund of $25,000.

Long-term, this also opens up the ability for investors to invest in strategies that meet their personal risk factors if they would like or based on the unique art of each collection.

They do a lot of research, according to Juan, into each investment and target real utilities such as forex and commodities trading.

This seems like they should also consider the idea of combining this with Cosmos further long term. This could be like a Cosmos decentralized VC-like investing strategy for one of them. Investing in projects in the early stages can hopefully result in bringing real utilities to Cosmos and bringing rewards to holders, such as tokens in their projects.

In the future, they would also like to get the communities to help dictate where they should invest the capital, but for now, they have done their own research to identify their strategies.

Social Followings/Unique Community Building

• Twitter - 2,927 followers
• Discord - 125 members

Investment Strategy

YieldBotz 1 portfolio today

• Osmosis - OSMO/STARS is ~41% of the portfolio
• High Frequency Trading (FX and commodity trading) - is ~59% of the portfolio
  
  
  

Team

They have 2 team members who founded the projects. According to Juan they are both accountants, and one is a chartered accountant. They have experience in the space and have invested in different ecosystems. They were inspired to start the project after being rugged by various projects in the past. They want to focus on transparency and allow for opening up the opportunities for average investors.

Concentration of Holdings

The concentration of holdings is something always to consider. One large whale tired of the project or upset could dump their entire holdings and drag down the market. Also, the more people who are or want to hold, the bigger the potential community is for future expansions and suggestions.

While YieldBotz 2 is still minting YieldBotz 1 has been completed and appears to be pretty decentralized. Out of 550 NFTs, there is 206 owners, which is a healthy distribution at only an average of 2.66 NFTs per wallet. This compares to some projects recently, like Trailer Park Kids which have an average of 7.69 NFTs per wallet.

With that said, they do have one wallet that is their treasury, according to Juan, that has 10% of the collection the top 10 holders control the following %s of the collection.

1. 55 or 10% of the collection but this is the treasury wallet
2. 23 or 10% of the collection
3. 16 or 4.18% of the collection
4. 12 or 2.18% of the collection
5. 10 or 1.82% of the collection
6. 10 or 1.82% of the collection
7. 10 or 1.82% of the collection
8. 10 or 1.82% of the collection
9. 10 or 1.82% of the collection
10. 8 or 1.82% of the collection
11. 8 or 1.82% of the collection
    

Removing their treasury wallet, which according to Juan does not earn yield than the actual top 10 addresses hold 117 of the NFTs or 21.27%. Looking at some other collections, this is a relatively good distribution.

Volumes/Data (Volumes on marketplace and prices)

Currently, the floor price of YieldBotz is 614. With the current monthly rewards target this month, that puts the gross yield on these at ~66%.

Since the marketplace sales began on February 11th, 2023, they have had 83 sales. The floor has moved from its 300 mint price to 614, and their median sale price has been 550 STARS.

Challenges/Concerns

The challenges here can vary and could be pretty large. If this project was ever reviewed, it could be considered a security instead of a standard NFT or investment club. This would likely be one of the biggest risks.

Given the size of the above risk, the largest could be the team rug pulling the funds. This would take it from an NFT you can own and passive income to simply an NFT you own. This could severely impact the price of the collection and hurt holders. Even with proof of reserve system, which I do not believe they have yet, this is still a risk until they have many multi-sig holders if they ever do.

Besides any other risks, one of the larger ones is that their investments are negatively impacted.

Conclusion

The project does not come risk-free by any means but is a unique experiment on Stargaze. If you enjoy the art and want to be part of a group like an investment club, this may be a great opportunity to do so and try and recoup some of your investment.

As a disclaimer again, Curious Cosmonaut did not receive any compensation for the paper. After their team reviewed the article, we received after asking 1 NFT to be used for the giveaway. Curious Cosmonaut has no affiliation with the team, and this article, like others, is to bring information to Cosmonauts.

Curious Cosmonaut holds 1 YieldBotz in its long-term gallery, which can be viewed here. Curious Cosmonaut may also hold some in its temporary market trading wallets.
If you enjoyed this and want to send any tokens or NFTs here is our wallet overview, and our Stargaze address is stars1yxa2tceefxacdsdsdg5u4ekd5lu0l3u0w2fsqy.