MultiversX Tracker is Live!

Optimal compounding frequency formula also accounting for gas fees?

All Cryptocurrencies

by COINS NEWS 97 Views

Does anyone know what the correct mathematical formula for finding the optimal compounding frequency for crypto staking is? Say I have 2000 of a token and it costs 0.7 tokens to compound it. The current APR is approximately 85%. How would I write this equation out?

Something like: (2000 x .85) / 365 = 4.657 daily on principal

(4.657 x .85) / 365 = 0.0108 - 0.7 = -0.6892 on daily interest if compounded

32.599 - 0.7 = 31.899 7-day compound

So (32.599 x .85) / 365 = 0.0759

But how would I go about calculating when the value over time from the accrued interest earning interest value outweighs the cost of the compounding?

submitted by /u/inducedconfusion
[link] [comments]
Get BONUS $200 for FREE!

You can get bonuses upto $100 FREE BONUS when you:
πŸ’° Install these recommended apps:
πŸ’² SocialGood - 100% Crypto Back on Everyday Shopping
πŸ’² xPortal - The DeFi For The Next Billion
πŸ’² CryptoTab Browser - Lightweight, fast, and ready to mine!
πŸ’° Register on these recommended exchanges:
🟑 Binance🟑 Bitfinex🟑 Bitmart🟑 Bittrex🟑 Bitget
🟑 CoinEx🟑 Crypto.com🟑 Gate.io🟑 Huobi🟑 Kucoin.



Comments