Welcome back to the Tribe!
Today we will be focusing on making some passive income from your crypto. In particular, we will be discussing purchasing NFTs to enable this!
Although, not just any NFTs. We will be purchasing NFTs that can be used on the Zed Run platform to create passive income month after month. Be warned as nothing in the crypto market is guaranteed and the market swings wildly which could also effect this passive income in the future.
In this post we will discuss:
- What Zed Run is (quick review)
- How we will generate passive income on the platform
- Our long-term strategy for growing this out month after month
Lets dive in!
Nothing should be considered investment or financial advice. Enjoy the ride!
Zed Run Stable Strategy
To kick off our post, lets quickly overview what Zed Run is, how it works, and what exactly we will be doing on the platform.
What is Zed Run
Zed Run is a virtual horse racing platform! Recently, it received a good amount of investor attention as well as explosive growth in user base.
The platform allows users to utilize NFTs in a new and evolutional way. Not just any NFTs, but the native horse NFTs that can be bought on Opensea. These horses can be moved to the platform and used for:
All of the above ways can prove to return a positive ROI overtime, but two in particular we will be focusing on in this article.
You see Studding (putting a male horse up for breeding) and breeding (using a female horse to produce an offspring) is a month to month guarantee. Therefore, you can hypothetically produce passive income by repeating these actions month after month. Lets dive in more.
Zed Run Stable Strategy – Generating Passive Income
If we take this one step at a time, lets took at studding.
Studding is the action of putting your male horse in the stud farm to be used for breeding by other users who own female horses. Yes, the horses are all virtual, but that is how it works even in the virtual world!
On the platform, you are able to put your male horse up for Stud once every 28 days AND the male horse can breed up to 3 times per month in that same stud term. In addition, it is important to know that there is a minimum stud fee per bloodline for horses. This keeps a price floor that actually helps in producing this consistent passive income. Lets take a look at this chart for reference:
This might seem intimating, but we will break it down and make it simple.
Zed Run Breeding Costs
Every time a male and female horse breeds, there is a minimum cost that is associated with it. The chart above will help guide that.
As a base, the minimum cost for breeding is a factor of .075. That factor is then multiplied with the [bloodline weighting factor * 80%] and then you add the bloodline type [weighting factor * 20%].
We can ignore the other stable weightings for now, but please note all of the factors above are in ETHEREUM.
For instance, lets say you want to breed a Szabo female (genesis) with another Szabo male (genesis) horse. Well, we can calculate the minimum breed amount by using the formula:
- .075 x [1.2 * .8] (szabo bloodline) + [1.8 * .2] (bloodline type)
You could do this for every horse you see on the market, but long story short – this is a base for your income if you are able to successfully breed out your horse 3 times in the stud farm!
If you do your homework on horses and make sure you don’t buy donkeys (slow horses) then you can almost always stud your male horse for at least the minimum. More than likely, you can get a little extra per month if your horse is a good racer.
Breeding out your male horse 3 times every month can profit you anywhere from $200 ~ $2000 of passive income depending on the breed, and type of horse!
With this in mind, we can come to an easy conclusion. If you research and buy certain male horses that have good racing stats, or ones that are unraced, chances are you can breed them monthly for consistent income.
The next thing to mention is that there is a discount for breeding within your own stable! The discount is in the chart above for those interested!
Either way, studding will generate passive income month after month. That income will vary based on the bloodline of the horses you buy and the type. For most people in the market, everyone wants a genesis horse and obviously the highest bloodline you can afford to breed with.
For instance, you want to buy a Finney genesis before you buy a Szabo legendary, because more people will want to breed with your genesis horse. But a Szabo GENESIS is worth more than the Finney genesis and will generate more passive income. Here is the hierarchy of bloodlines for reference:
This is a good chart to reference for how bloodlines work in breeding. In addition, we can see that the top left “Nakamoto” is the strongest bloodline in the game and by turn is the most expensive to obtain. Obviously along with that, the Nakamoto genesis horses will generate the most monthly income out of all the horses.
Income From Selling Offspring
The next way to consistently generate passive income is from selling your offspring.
To produce an offspring you will need to purchase a female horse and breed it either in the stud farm or with your own male horse! If you go to Opensea you can see what horses sell for depending on the type of horses you plan to breed!
For instance, if you have a Szabo genesis Z3 female horse, you might want to breed it with another Szabo genesis Z3 male to keep the blood line and create a legendary! It entirely depends on what is selling best on the market!
If you were to breed the above horses, you would get a Szabo legendary Z6 horse! Now, lets head to Opensea to check how much those sell for:
As we can see in the partially blurry image above, a Szabo legendary Z6 horse can go for .2 Eth to well over .3 Eth within just the first couple of rows!
In addition, if your horse has good stats from racing you can sell the offspring for even more! Make sure to consider than!
With the idea of studding consistently every month for passive income and the knowledge you now have about producing offspring to sell on Opensea, the sky is the limit!
Now, you just need to develop a consistent stable strategy and map out how much Ethereum you can earn per month.
If you are curious about how we setup our stable strategy, then here is how:
- We started by researching what on the market was selling and for how much (Find the best deals!)
- At the time we started, it seemed like selling legendary offspring and studding good racers was the best value
- Then we researched the average cost of each bloodline of horse versus our budget (What could we afford)
- Then we took the time to research and look up around 50-100 horses in our budget to find the best racers in that range
- Afterward, we ran some numbers to compare the best return month for month per our total investment! (Calculate your ROI)
- The next step was confirming the horses we wanted, and reaching out to the owners (Find the sellers to start discussions)
- From combing Opensea, Zed Run and the community discord we were able to successfully save several thousands of dollars by reaching out to sellers directly and offering appealing bids to their horses! (Learn to make a deal to save some dough)
- Once we had our stable built out, we needed to map out when the best time of the month was to breed and stud all of our horses to minimize upkeep (Create a schedule)
- After the first successful month of breeding and studding, we tested selling levels of our offspring and stud prices (Test your market)
- The next month we made adjustments to maximize our potential income and sell our horses and stud out our horses at their maximum level per the market! (Optimize your market strategy)
This is the basic strategy for making passive income on Zed Run!
Now you can always do a few more things after those steps:
- Race your offspring to increase their value and get more income from selling
- Re-invest your profits to buy more horses to stud and breed for more income month to month
- Race your breeding horses for more income (since you bought winners already!)
- Continue to learn about the platform and leverage new tools they implement to make more income over time
Zed Run Stable Income
We hope this post helped you develop your Zed Run Stable Strategy! If you have any questions, be sure to reach out on discord to the San francisco tribe, or find us on Twitter!