Posts

Are You Earning That Juicy APY?

avatar of @agr8buzz
25
Agr8buzz
@agr8buzz
·
·
0 views
·
2 min read

Dear jebus I hope you know what APY is, and if not read on! There's been an explosion of rebase platforms coming online offering some pretty insane APY's.

What is APY?

APY refers to Annual Percentage Yield as it utilizes a real rate of return through compounding interest. With rebase platforms (OHM forks) this is done through auto-compounding yield multiple times a day onto the principle amount. A thing of beauty!

Basically sit back and relax and watch your principle amount grow each day, multiple times a day in fact.

Are High APY's Sustainable?

For most, if not all OHM forks the high APY is dependant on treasury growth through the sale of Bonds. If enough bonds continue to be sold supplying the treasury with the platforms token, then generally all is good and the APY's remain.

As the platforms age I don't expect the insane APY's to last forever. It's too good to be true, right?, clearly!

That said it will be a fun as more and more people jump into what some are calling DeFi 2.0. Rebase platforms and their treasuries have solved some problems from previous DeFi platforms but this is experimental and extremely high risk. No one knows for sure how this will play out.

However here are some strategies to invest and incrementally pull out some of the compounds in an effort to get back you principal amount before it all goes belly up. Less risk, but less rewards, to each their own.

What OHM forks are you fucking with?

Are you on the KLIMA, WONDERLAND which I guess are the blue chips of rebase, or have you gone full degen with new platforms like Hector DAO and Metavwrse PRO?!?

Ciao for now,

@agr8buzz

Additional LeoFinance Content:


Posted Using LeoFinance Beta