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?
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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.
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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?
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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?
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Pretty much yes, although @tipu has variable profitability for vote buyers and this also slightly affects investors profit.
But that SBD can buy more steem, so shouldn't that be a wash if apr is calculated in Steem?
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Good point! But there are also other variables, like curation part that has to be taken into account when calculating upvote value and probably this does not scale linearly with SBD to STEEM ratio. Will have to think about it :)
Anyway when STEEM is falling down you can see decreased payouts for all voting services. The good thing is that @tipU upvotes at around 80% VP, not 100% VP like bidding bots. So when there is lower demand for upvotes, @tipu just accumulates more VP (to 90% for example) that can be used later on for increased profit. Bidding bots can't do this since they already reached 100%.
The result of this (and few other things) is easy to spot :)
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.
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