Polar Nodes review – Making $15/ week from an $85 investment

Polar Node is a passive income protocol that depending on your node tier you could be making anywhere from $1 to $85 per day. They launched on January 11th, 2022, on the Avalanche Blockchain.

Just like many other node projects, the goal is to create a sustainable passive income protocol that gives the right to investors to receive a daily payment generated by the protocol from the current investments and from the distribution that occurs when a node is bought.

It started first with only one tier. 55 $Polar tokens to create a node, and in exchange, you would receive 0.99 $Polar per day.

After some time, they did an update and added a few more tiers.

How it works

To create a Polar Node, you first need to purchase the number of tokens needed for the node tier you want.

Depending on the tier you select you can make 0.45 — 35 $polar a day.

Then the tokens spent on the node will be split between the treasury, liquidity pool, and rewards distribution. The treasury will utilize different investment strategies that are hand-picked by the community in order to generate additional revenue. This revenue will also be redistributed to node holders.

Note: The tokens spent are non-refundable, just like many other node projects.

This means money is coming to the protocol from 2 main streams:

1- Polar uses some of the funds to invest in other projects like Anchor Protocol to help the protocol be more sustainable. With that percentage gains, they are able to buy back their tokens to reward investors that hold a polar node.

Polar uses what they call the DANO system (Decentralized Autonomous Node Organization) which means whenever they want to invest some of the funds they first create a pool where we as a community have to vote for the best option.

2- When someone creates a new node the tokens used are non-refundable and are re-distributed in the protocol, assuming some go to the reward pool to help pay back holders.

When a new node is created a series of operations happen:

15% is swapped to Avax and sent to the treasury

70% is sent directly to the distribUsePool to be distributed later

5% added to liquidity pool: half as Polar and half as Avax

10% to the contract for Polar team members

Taxes

Currently, there are no sell taxes, only claim tax that differs on what tier you have. That tax is distributed back to the protocol and reward pool.

Fuji ~ 1%

Mont Blanc ~ 3%

Kilimanjaro ~ 5%

Ushuaia ~ 8%

Everest ~ 10%

That means, if you have a Mont Blanc node and you claim 10 $Polar you have in rewards, you will be charged a 3% fee. So you will receive 9.7 $Polar instead of 10.

Security Check

Liquidity

150k tokens are in the liquidity pool of traderjoe. They are locked in a multisig 4/5, with two team members, one influencer, and two members elected by the community.

Team tokens

The team holds 8% (40k) of the total supply, but these tokens are locked for 6 months.

KYC (Know your customer)

The team is not KYCed with a third party like AssureDefi or RugDoc nor has the intention to do it in the short team, this could change later.

But they revealed their identity to Yanteh the influencer who holds one of the keys for the multisig wallet. Yanteh is fully doxxed, you can check who he is accessing his social media accounts:

Twitter: https://twitter.com/Yanteh_

Are the contracts audited?

Currently no, but we voted to do it with the cash flow incoming from investment. Hopefully, they end up doing it.

I will leave a link to the proposal.

PS: I choose number 1, cuz I would rather use the funds to audit the contract before doing anything else, but hey the majority end up choosing number 2.

https://snapshot.org/#/polarnodes.eth/proposal/0x87d2baf8fd14c2e6cff0e6f1a59e8e2a2fccaab1c9879fae09ccaa034be95e49

My 2-months results with Polar

It started first with the Mont Blanc (it was the only one available). The fee was and still is 55 $Polar tokens to create a node, and in exchange, I was receiving 0.99 $Polar every 24 hours.

I created my first node on Jan 29th, for a total cost of $85. Bear in mind that I got in when the price per token was sitting at $1.55

Since then I have been cashing out my rewards once to twice a week. It got a few rides to above $5 but hasn’t been able to hold that price, thanks to that few spikes, I’ve been able to sell as high as $6 per token helping me get my initial investment back quicker than I was expecting.

It took me less than 30 days to get back my ROI.

Here’s a chart showing my cashouts.

• Transfer: means rewards o yield generated.
• In: The amount used to create a node.

Since ROI, I’ve made over $50 in free money.

$136.63 (rewards) — $85(initial investment)= $51.63

How to create a node

Pretty straightforward,

Go to traderjoe.xyz and swap $Avax for $Polar.

2. Go to the official Polar website, connect your wallet and choose the tier you want.

3. Done.

If this is not enough, there is a link to their docs where you can find more in-depth instruction on how to create your first node.

https://polarnodes.notion.site/polarnodes/Polar-Nodes-Home-3968bc551df14ff9b7ac0f46fd4497e0

Conclusion

One good thing is that I have been able to take out my initial investment, so there is no more risk for me on this one.

The reality is there is a ton of Fud on Polar, but they are still holding nicely, and they have been working and improving. They updated their UI, also working on NFTs, and have been very active with new investments and proposals. I think if they wanted to rug they had plenty of time for it.

With that said, we never know if a project can succeed or not. Do your research before allocating money to any project.

Lastly I think this might go up if this pattern works out. If we take a look at the chart it looks like a breakout, so we might see some upside move if they publish the needed updates about the project.

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Disclaimer: This is not financial advice, I am just a guy with a laptop sharing his opinions and experience. This is for entertainment purposes only. Always Do your own research before investing.