Should you Really Invest in Safuu and its crazy 383,025% APY? Is it Sustainable?

In my journey to making $10,000 regular monthly passive income, I’m always on the lookout for new investment ideas. In March, as explained in my recent post, I made $3,337 passive income, so there’s still some way to go.

Safuu is a recent project, launched in March 2022 by its CEO Bryan Legend. On the face of it, the project looks too good to be true, offering a crazy 383,000% APY. So, Should you invest in Safuu?

I hear you, it looks a lot like so many other of these DAO projects that mushroomed all along 2020 and 2021: Olympus DAO, Time Wonderland, etc….most of them seeing huge drops in their APYs combined to impermanent loss from a simultaneous drop in their token prices.

That made a lot of unhappy investors along the way.

But the CEO of Safuu is doxed, reasonably well-known (albeit slightly controversial), and so far the project is holding steady.

So I thought: why not take a look. And the best way to do that, is to put your money where your mouth is, and get some skin in the game.

I invested a small sum, around $430 early May 2022. I’ll be updating you every month on where my capital stands.

So the question is: should you invest in Safuu?

This is what this review will cover. I’ll cover the following topics:

What is Safuu?
Who is Bryan Legend the CEO?
Is Safuu a one-man show? Is there a Safuu Team?
What is the Safuu Protocol?
The Safuu Auto-staking and Auto-compounding mechanism
The Fire Pit
The Safuu Treasury
The Safuu Community
Safuu Partnerships (SRT and airline)
How to invest in Safuu?
How can the APY be so high? Is it sustainable?
Is Safuu a scam? What are the risks involved?
Safuu has been audited by Solidity
How much can you expect to make from a $1,000 investment in Safuu over 1 year?

Let’s get into it.

What is Safuu?

Safuu is a Defi asset.

It’s an auto-staking and auto-compounding protocol with an amazing fixed APY of 383,025% for the first 12 months.

After the first initial year, your interest rate drops over a predefined Long Term Interest Cycle period.

Who is Bryan Legend, the CEO?

Safuu was created by Bryan Legend, an Australian entrepreneur, in march 2022, so it’s still a very recent project.

Bryan Legend was also the founder of several other web projects:

The Clever Defi protocol
The TAGZ exchange (under the name Bryan Seiler)
Fitrova, a fitness tracker app. Find out what happened in this article.

Most of these projects were quite unsuccessful, which stirs quite some controversy around Bryan Legend. The fear is that he would essentially be just a serial scammer and a fraud, and totally unfit to lead a sustainable, profitable DeFi project.

Bryan Legend maintains that these projects were just mainly failed business ventures but never scams. He has said that quite openly in several AMAs. He does not hide his participation in these projects nor does he shy away from his responsibility around them.

It’s up to each and every one of us to judge whether that’s sufficiently convincing or not, but contrary to many other project CEOs, he has fully doxed himself, has a youtube channel and communicates regularly on his project and the status.

Is Safuu a one-man show? Is there a Safuu Team?

After numerous requests, Bryan Legend did a one-hour AMA to present his core team on May 6th 2022.

Among the people in the picture above you have:

Dan, from the UK, in charge of the SRT (Safuu Racing Team)
Juliana, from Colombia, in charge of Social Media Presence
Adrian the Social Media Manager
Ray helping with web development
Damian the Chief Operating Officer

Now let’s take a look at the protocol.

What is the Safuu protocol?

Safuu Protocol revolves around the $SAFUU coin, a BEP token that rewards its investors with auto interest payments for a period of 13.5 years, until the max supply of 3.25 billion tokens is reached.

The address for the Safuu smart contract: 0xE5bA47fD94CB645ba4119222e34fB33F59C7CD90

Below are the Protocol’s main characteristics.

The Safuu Auto-staking and Auto-compounding mechanism

It is easy to stake Safuu, you only need to buy and hold your Safuu tokens in your wallet and they will auto-compound.

They will never be held at a 3rd party.

Interest is paid every 15 minutes and compounded automatically in your wallet. It is the fastest auto compounding protocol in crypto.

Safuu charges taxes when you deposit (14%) and withdraw (16%) your money so that’s a big 30% for an in and out.

The Fire Pit

Safuu has an automatic token burn system called “The Fire Pit”.

It prevents circulating supply of the Safuu token getting out of hand and becoming unmanageable.

The Fire Pit burns 2.5% of all Safuu Token market sales and is burned in the same individual transaction.

The Safuu Treasury

The Safuu Treasury plays an important role.

It stabilizes prices by providing support in times of high market drops.

It also holds the funds for Safuu investment and new projects, along with the marketing funds.

Here is the Treasury’s wallet address: 0xa9c6d0cc785569b450393A69599E97fAED5D9dd9

The Safuu Community

Safuu has a dynamic and vibrant community that has shown strong support to the project by buying most of the dips and keeping the price of the token up.

Safuu partnerships (SRT and airline)

Safuu is growing in adoption as it has pumped up communication.

Safuu has invested in an auto racing team (the Safuu Racing Team) launched mid-2022 in partnership with Yazoo drinks.

The car is involved in the British Touring Car Championship), the premier motor sport series in the UK, highlighted on ITV.

It is also considering sponsorship of an airline in 2023.

How to invest in Safuu?

Here are the steps you need to follow to buy the Safuu token and start staking:

First you need a Metamask wallet. Here’s a Coindesk tutorial to help you
In your Metamask, select the Binance smartchain
Then you need to buy some BNB tokens to swap them for Safuu tokens and pay the gas fees for all your transactions
Now go to safuu.com
Click on the link that says « Buy Safuu »
That will take you to Bogswap, a decentralized exchange (DEX)
Connect your Metamask wallet on the top right
If you have an account at an exchange where BNB is available, buy some BNB over there and send it to your Metamask wallet
If you don’t hold any BNB, on the far left click « Buy with Fiat »
Choose your currency and make a payment using Ramp. That Fiat amount will then be swapped for BNB and you will be charged 2 to 3% from Ramp as a commission
One you’ve swapped your BNB for SAFUU on BogSwap Dex aggregator, all you need to do is connect to the Safuu Dashboard , connect your wallet and check the daily evolution of your holdings

It’s as simple as that, no need to withdraw, compound or take any daily action, the protocol has an auto compounding mechanism that takes care of everything.

How can the APY be so high? Is it sustainable?

APY stands for Annual Percentage Yield. Safuu offers an incredible fixed APY of 383,025,8%.

The protocol adds interest to your account every 15 minutes, at every Rebase. That is known as an ‘Epoch’.

It’s the power of compound interest that makes the incredible APY, in fact every 15 minutes the protocol adds 0.02355% to your account.

But that’s just the math, the question is how is that sustainable without a massive ponzinomics mechanism?

Well, you need to keep in mind that the advertised APY is just for the first year, after that the rewards will drop fast. Here is the schedule taken from the white paper.

After 12 months your rewards will be divided by 11 for the next 6 months
Then rewards will be divided by 15 for the next 6.5 years
After that rewards will be divided one last time by 7 until max supply is reached

So don’t make any mistake, the APY is not forever. One year’s time is very long in DeFi terms, most investors never hold for that long and are here for short term games. All the while the token price will be moving, so most likely you’ll be selling to secure your gains along the way.

Most people will never, ever, be able to hold for an entire year. Test yourself, try it.

Is Safuu a scam? What are the risks involved?

First, like all Defi protocols, Safuu is extremely high risk. Do not invest any sum of money that you are not entirely willing to lose.

The Safuu Insurance Fund

Safuu Protocol has set up an insurance fund, the SIF (Safuu Insurance Fund) that stores 5% of all trading fees. It helps sustain and back the staking rewards by acting on price stability and significantly reducing downside risk.

Here’s the SIF address if you want to check the fund’s holdings:

0x082D0FbCA3D80b2d4A05E20bFc227523bE8EFEF3

Safuu has been audited by Solidity

The Protocol has been audited by Solidity.

The results of the audit can be found here : https://solidity.finance/audits/Safuu/

For a quick recap, go to the “Audit Results” section, where Safuu passes on all items, with a few warnings however on the Centralization of Control item.

How much can you expect to make from a $1,000 investment in Safuu over 1 year?

The math for a $1,000 investment in Safuu is available on the website, it’s actually quite simple.

Taking into account price stability of the $SAFUU token, after 1 year of investing $1,000 you own an amazing $3,830,454.

Of course nothing here is guaranteed. We have no certainty that the protocol will even exist after one year, or that the token price will have remained stable.

Please take these numbers with a grain of salt.

Conclusion

When things look too good to be true they usually are, especially in cryptoland.

It’s impossible to count the number of protocols that have failed miserably, crashed to the ground and left investors weeping.

So it seems highly unlikely you’ll ever maintain such insane reward levels for very long. I fully expect the $SAFUU token price to crumble at one point.

At time of writing the Safuu token price is $143.7, my best guess is that within one year that price could be below $10, even below $1. So take that into account before you invest.

That being said, if you’re willing to take a risk with limited funds you can try yourself and see if you’re capable of holding one. Because for those with the nerves come great rewards, and Safuu could well turn out to be a hugely profitable venture.

One strategy you can follow is to quickly recoup your initial funds, and then stay invested on “free” money. That way you’re taking all the pressure of your shoulders and you enjoy the ride.

So that’s it for my Safuu review.

If you enjoyed it, you can buy me a coffee … 😉