🙋🏻 Example: Ether and Pether
An example for Earning by Hodling
Looking at other tokens, a usual trading volume per day is 10%.
Teneo takes a fee of 1.2% (0.2% goes into the DAO wallet).
- Day 1 Peter locks 1 ETH and receives 0.989 tenETH Peters Balance -> 0.989 tenETH
- Day 2 Peter earns 1% of 10% (0.1%) through the reflows Peters Balance -> 0,989989 tenETH
- Day 101 Peter earned in total 10% (100 times 0.1%) after hundred days. Peters Balance -> 1.0879 tenETH If he unlocks his ETH now, he has to pay the fee of 1.1% again, but still makes easily a profit: 1.0879 tenETH -> burn/unlock -> 1,0759331 ETH
More Ether for Peter.
Calculated for a year, this results in an APR of 36.5% (uncompounded) for tenETH. Keep in mind when you swap in or out you have to pay fees, so your APY for ETH is 33.5% (uncompounded) in this example. Compunded in this example (Peter has to pay gas fees to compound):
- +44% APY in the first year.
- +103% APY in the second year.
- +99% APY in the third year.
- +107% APY in the fourth year.
- +123% APY in the fith year.