Why you shouldn&#x27;t trust the APR

pizzabot 2 years ago

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poshtoken 2 years ago

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cursephantom 2 years ago

I'm looking for APR just to add more calculations for the result IF AND ONLY IF it doesn't change until the end of contracts like dlease or bank deposit. Never look into APR in the crypto game projects and I prefer to calculate my own ROI with my own formula. 🤣

achim03 2 years ago

It's a good idea to make your own ROI calculation because some APR's simply seem to nice to be true and they often hide some less visible risks...

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cursephantom 2 years ago

they often hide some less visible risks

True! It's hard to trust APR nowadays. Try -> get the first result -> Calculate it with my own formula. 👍That's what I'm doing UwU.

Data from September 1st-6th:
LENM staked: 55
Average 1.6 LEN/day
Min. 0 Max. 2.4 LEN/day
Price: 66.13 LEN/LENM (09/07/2022 06:00 UTC)

Extended with linear scale:
LENM staked: 55 ~ 275 HIVE
Average 584 LEN/year ~ 43.8 HIVE
Min. 0 Max. 876 LEN/year ~ 0 to 65.7 HIVE
APR 0%-23.89% with an average of 15.92%
*State to change every day

ph1102 2 years ago

Completely agree with you... High APR is sometimes (not always) profitable if you take profits OFTEN... If not, 99% you will lose money in some way :)

achim03 2 years ago

I like high apr's like everybody else but they shouldn't blind us from reality. 150% APR in a shittoken is not sustainable...

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relf87 2 years ago

I stopped looking at APR for a long time. I place more emphasis on the fundamentals and the utility of the tokens. If they are good, the value of the token would go up.

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2 votes

achim03 2 years ago

It's a very common mistake to be blinded by high APR's. If the token is not sustainable and has bad fundamentals, even a high APR will not allow you to make a good investment.

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sodomlv 2 years ago

Totally agreed with you.
I experienced the loss several times due to high APR and I need to take this experience and change my investment strategy

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2 votes

achim03 2 years ago

It's certainly good to look at APR's but it shouldn't be the only factor to take into consideration for our investement strategies.

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jfang003 2 years ago

It's definitely a factor and I think selling off the token into some sort of stablecoin makes sense in that situation. They don't realize that all of this selling pressure might not work out well for them in the end

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achim03 2 years ago

It's a very short term perspective and in the long run it doesn't work out most of the time

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ecency 2 years ago

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achim03 2 years ago

Thanks for the support!

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ijat 2 years ago

I agree that many tokens have an inflated APR. I also believe that some tokens create deflation as you said by paying in their own token.
!PIZZA

achim03 2 years ago

The token that you get as dividend really matters. It's easy to print a token out of thin air. But it's very difficult to give it a long lasting value.

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points-fr 2 years ago

As you noticed, the APR is one of the indicators to take into account. Sometimes the APR can be very high (very good return) but it is not possible to invest large sums.

Comme vous le remarqué l'APR est un des indicateurs à prendre en compte. Parfois les APR peuvent etre très haut (très bon rendement) mais il n'est pas possible d'investir de forte sommes.

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2 votes

achim03 2 years ago

That's a good point!

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12 votes