Did you take into account that (Staked) SPS is a depreciating asset (Voucher amounts and value as well as interest are going down) while Liquidity Pool SPS is an appreciating asset?
In that sence they are both depreciating given that you get a % ouf of the ever increasing pool.
What I did not take into consideration is the compounding of the daily rewards, but that would quickly become complicated since we would have to make guesses regarding the voucher price. So this calculation should be seen as a snapshot of the numbers if you were to act in that very moment.
Mmmmmm..... no.
DEC will depreciate vs. SPS as the AD value of DEC becomes less and less, as DEC depreciates vs. SPS- shares in the LP will actually appreciate as the SPS:DEC ratio automatically adjusts- multiplying your AD points over time.
Absolutely! it's a snapshot- and yet, Staking is a 4 week commitment. If someone stakes their SPS, today, they can't move it into the pool next week when the ratio changes so you definitely should have considered at least a week of compounding in your analysis.
From a purely numeric standpoint, it looks as if @zugdaze is correct.
However, there could be other considerations in deciding whether to stake or use a liquidity pool. The one which comes to mind for me is time:
How quickly can I take money out if I needed that money quickly?
According to Tribaldex, SPS cannot be staked, and it cannot be delegated. This means SPS remains liquid no matter if its in a pool or in a player's wallet.
Suppose the post was about SPT instead of SPS. SPT can be staked and delegated; that we knew.
According to Tribaldex (because neither Hive Engine nor LeoDex have these details),
The cooldown period for an un-delegation is 7 days;
The cooldown period for an un-staking is 28 days (spread over 4 transactions);
If time is not a concern, stick with the purely numeric analysis and gowith staking
If time takes precedence over ROI, the pool makes more sense.
What?!?!
How do you figure that Staking is better ROI than the SPS:DEC pool?
4.5K SPS, staked= 1 voucher and 7 SPS/day
4.5K SPS, in the pool= 33 SPS/day
Personally, I value 26 SPS over 1 Voucher- even if the market, currently, has them at a 30:1 ratio.
Hi, the reason is (with numbers used in the video):
1 voucher = 18,67 usd = 18,67/0,61 sps = 30,6
APR = 6,84 sps
30,6+6,84= 37,44 sps
and since 37,44 > 30,8
Staking is better.
Did you take into account that (Staked) SPS is a depreciating asset (Voucher amounts and value as well as interest are going down) while Liquidity Pool SPS is an appreciating asset?
In that sence they are both depreciating given that you get a % ouf of the ever increasing pool.
What I did not take into consideration is the compounding of the daily rewards, but that would quickly become complicated since we would have to make guesses regarding the voucher price. So this calculation should be seen as a snapshot of the numbers if you were to act in that very moment.
Mmmmmm..... no.
DEC will depreciate vs. SPS as the AD value of DEC becomes less and less, as DEC depreciates vs. SPS- shares in the LP will actually appreciate as the SPS:DEC ratio automatically adjusts- multiplying your AD points over time.
Absolutely! it's a snapshot- and yet, Staking is a 4 week commitment. If someone stakes their SPS, today, they can't move it into the pool next week when the ratio changes so you definitely should have considered at least a week of compounding in your analysis.
From a purely numeric standpoint, it looks as if @zugdaze is correct.
However, there could be other considerations in deciding whether to stake or use a liquidity pool. The one which comes to mind for me is time:
According to Tribaldex, SPS cannot be staked, and it cannot be delegated. This means SPS remains liquid no matter if its in a pool or in a player's wallet.
Suppose the post was about SPT instead of SPS. SPT can be staked and delegated; that we knew.
According to Tribaldex (because neither Hive Engine nor LeoDex have these details),
If time is not a concern, stick with the purely numeric analysis and gowith staking
If time takes precedence over ROI, the pool makes more sense.