Ok so I had a thought the other day, how often should I take my earning from a pool and reinvest it back in to maximise my APR?
Now in an ideal world, you reinvest back every day to maximise that return howver there is a catch; every time you add to a pool you lose all your earnings for that day
So if you add to a pool every single day for a year you would get zero earnings, so it becomes a balance between the profit from extra capital in the pool vs. lost earnings for a day
So the other interesting thing is that the APR changes the equation so if this generates some interest I will run through a different pool each time :) very open to taking suggestions on which pool to look at next, because I earn a fair bit of Oneup I started the there.
Ok some quick rules on how I did this
- We start by investing $100, why because it is a nice easy number and really the principle does not matter, % earnings are the same.
- We are going to run for a year, why? again it aligns with APR (te A is for Annual!) and gives a nice bg time frame
- We are going to reinvest every x days, constantly through the year, this makes it easier to remember and allows it to be applied to the real world.
- Ignoring daily bonus, to hard , don't want to do it.
Oneup/Hive pool
Ok so can see we are working with a APR of 94.73% lets go!
tl:dr 26 days, but come on its great stuff below
First Up - No reinvestments
Ok what if I do nothing? jsut leave my intial investment alone?
Well first of you can see intrest is the exact same every single day
And as expected total earnings are steady and $94.47 dollars. This is our minmum benchmark, we need to earn at least this otherwise why bother?
Reinvest every second day
Ok so I am a real keen been and every two days I am reinvesting my profits, is this a good idea?
Well on one hand our intrest is growing this time, which is nice to see
However we can see that every two days we are killing out earnings for that day, that is a fair loss
And when we zoom out to the whole year, we can see we are 30% worse of then doing nothing!
Ok but what about every third day ?
Well we can already see a better intrest rate then day 2 and double that of doing nothing after 265 days
And here we can see we are earning more often
However after 365 days we are still 7% worse of then doing nothing at all!
Turns out every 4 days is better then doing nothing
So if we reinvest every 4 days we are $103.07, an 8% improvment, so anything more then 4 days is a real winner for our earnings
But the real sweet spot is every 27 days
Ok to save you some time I ran all the way up and down and the best timing is every 27 days!
By doing this every 27 days we boost our earnings to $142.20 or a 50% improvement on doing nothing.
Ok but how close do we have to be to 27 days?
So it really is not that importenet to be spot on for 27 days, at 20 days you earn 140.93 lsoing out on $1.3
And at 30 days you drop to $141.99, missing out on 20 cents
Like I said would really love some feedback on where to take this next!
Posted Using LeoFinance Beta
mhh, I am not sure why it is not just best to re-invest every single day.
I guess it is because of this
I don't think that is how pools work, you dont cancel all your earnings for that day just cause you re-invested. I do re-invest all the time, and while I never specifically checked, I am quite sure I still get rewards for that day.
So I was told from a pool creator that eveytime you enter a pool you lose that rewards for the day, this is to stop someone buying up huge, dumping it in 1 hour before payout and then withdrawn and putting back on market
I thought that would only count for the amount you are putting into the LP, so when you have 100 shares and put 10 more shares in you only get rewards for 100 that day and the next day you get rewards for 110 shares.
I am pretty sure this is how it works, it is tough to really check for me since I am in more than 10 pools.... Who could confirm this? I don't really want to tag aggroed.
Damn maybe your right, unsure who to ask to get a idea
I just checked in my history. I staked an additional 50 HIQS into the LP on 10.04.2022 and got rewards for my 200 HIQS I had in the pool on 09.04.2022 and 10.04., I got rewards for the whole 250 on 11.04.2022. While it is only one case I checked, it seems your premise is incorrect.
Oh no, thanks for that's will look into it
I am also a Pool and Token Creator btw :^)
That can't be right. I always reinvest in my pools everyday, yet I always get my full rewards. I track these things carefully and have never noticed missing any reward payments due to reinvesting in the pool
Damn starting to think I was misinforned
Thanks !LUV
(1/3) gave you LUV.
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