It doesn't work that way :) @tipU is not a bidding bot. If vote buyers do not request votes, @tipU just accumulates more voting power so it can use it later on. There was no situation when @tipU voting power would reach 100% (that would mean loosing potential profit).
The APR is lower because:
- STEEM price went down
- reward pool went down - after the HF20 there was a time when nobody was voting which made everyone's vote much higher value. This meant that @tipU could generate more profit daily. But now we're back to the usual business and the APR is mainly dependent on STEEM price (in case for @tipu at least).
Yeah, why does steem price impact apr? Don't we get paid in steem... Oh, but people pay for 1sbd of vote, and it takes more vp... No, but then they pay more steem for that... Is it because SBD is lower? But then it takes less...
Yeah, no, why does the price of steem matter? Or is apr calculated for dollars?
Posted using Partiko Android
Vote value depends on STEEM price. If @tipU vote value = $ 10 it can make a total of $100 of votes each day, if vote @tipu vote value is $20 - it can make $200 of vote value daily, which means twice the profit is SBD stays at $1 (although users can also pay in STEEM).
So you calculate apr in USD, then. I mean it's not that I'll get 17% more steem over the course of the year, if today were the average day, it's that I'd get 17% more SBD.
Posted using Partiko Android
Its calculated in STEEM in fact :)
Then I guess I still don't understand. What's the underlying math? If steem is down, shouldn't that be irrelevant, since you'd get the same amount of steem, it's just worth less... right?
Posted using Partiko Android
But vote payers also pay in SBD. Less vote value -> less SBD received for upvoting -> lower APR
You can check the steemprofit.info website for the description.
In simple terms: APR = (STEEM + SBD) * 100% * 365
SBD is changed to the value in STEEM.
I think I get it. But if people just paid in Steem for value in Steem, the apr would only change based on reward pool supply?
Posted using Partiko Android
But that SBD can buy more steem, so shouldn't that be a wash if apr is calculated in Steem?
Posted using Partiko Android
So you calculate apr in USD, then. I mean it's not that I'll get 17% more steem over the course of the year, if today were the average day, it's that I'd get 17% more SBD.
Posted using Partiko Android