I think many are seeing the APR of SPS dropping
But it's actually much higher than the current 25%!
- First, if you compound that interest (meaning that you claim the interest and restake it daily) your APY is currently at around 28.3%
In the coming months it will continue to drop, but starting on May 25th and July 26th two major airdrops will end. This will greatly reduce the output of SPS which means that the APR will probably remain at around 20%.
Of course if you have already been restakting your SPS last year then your APY will also be much higher. It was for a long time above 100%, but even at e.g., 80% it would have given you a 122% APY!
But there is an even more important reason why the APR(Y) is even higher
- Second, if you stake SPS you also receive Vochers on a daily basis. At the moment 1 Voucher is being dropped for about 18k SPS. This essentially means that the more SPS you have staked, the more Vourchers you get (a no brainer ;), but what it means for your APR(Y) is that the more SPS you got the higher it will be. In other words, it is non linear.
For example: I received 4 Vouchers yesterday for holding ~73,300 SPS. It is reasonable to assume that the selling value for Vouchers is about 2 Hive. If you look at the chart it varies quite a bit, but that is because it rises when SPS is in demand (e.g., the SPS validator nodes sale spiked the prices from 1.2 to 2.4). So if one simply waits for this events, then one will probably be able to sell Vouches for about 2 Hive.
So 4 Vouchers turn into 8 Hive. Obviously, the value of Hive also varies a lot, so if we want to calculate how much that contributes to our APR(Y), then we have to take a fixed value. So let's assume Hive stays at around 1$. That means you would get an extra 8$ a day for holding ~73k SPS.
Since ~73k SPS is currently about $9,1k we can then say that if all things remain the same (which they won't), we would get an additional 8x365=$2920 for holding that amount of SPS. And $2920 would mean an additional APR gain of a whopping 32% (32% of $9,1k=$2920)!
Again, this isn't linear. So if you would be holding 18k SPS you woud be getting $365 a year or 20%.
You have to calculate your own APR(Y)
For me it is:
~25% + ~3.3% + ~32% =~60%
So are you going to stake your SPS now? ;)
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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I have been staking currently about 62k which gives me 3,3 Vouchers approximately. Sometimes I sell half of my SPS for DEC and put it in the LP giving me more airdrop points. I was planning to unstake some when SPS was around 80-60 cents but I didnt do it I wish I would have sold at least 10kSPS at that point. I could buy so much sps for that now and additionally I would have had it staked as HP and HBD which would have given some extra as well especiqlly now that staking HBD in savings gives 20%
Well I did not so I am holding on. If I ever sell my SPS thats gonna be the day when I also stop playing Splinterlands, which I just do not see happening anytime soon. Even if the APR goes down to 8% I will just keep it there and wait. I think long term, and long term is over 10 Years, which is kinda a century in crypto. But close to 63k SPS at 8% apr without adding new SPS to the stake makes a double. And is 135k but I will keep adding SPS and you can compound daily or every hour if you want. So you can make that much more. In fact lets say I add 3SPS per day for 10 years this 152k keep this for 15 years and its 100k more. And wht if it stays above 10% APR which totally could be a thing and the numbers go crazy 😄 Where will SPS be in 10 years? Idk but we will see I guess. Or not, I am kinda stoic on this one. Either SPS is gonna be part of my retirement fund or not. Compounding interest is lovely.
Sorry for this freakin long comment. I think I could have used this for a post lol.
love the long term vision :)
the team is amazing and is delivering (albeit a bit late of their promises) There should be amazing growth in the future
I very much hope for enormous growth in the future. I think it is gonna be a major game changer when SPS staking on players comes in. Going to be highly competitive and for some it could be their actual job to fight in the Arena
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very clear report
This is really awesome to know and thanks for sharing.
Yep, I think people get hung up on the falling APR of SPS and don't realize it's earning you in other ways. Right now it's SPS and Vouchers but later I'm sure it's going to start accounting for other things. I've also heard the SPS will play a direct factor in land which is something we should see end of the year or start of the new year.
Buying sps at current price might be the least price we will ever see sps. I believe sps is a good investment
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yep!
That’s a clear visualisation on how insanely interesting this airdrop is!
This is one the many importance of sps that people don know. It is important to know that sps is not a bad investment and the price might be tanking now but 1$ spa is still very achievable
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definitely!
Helpful post 👍👍 much appreciated