When I first read about OlympusDAO and wrote my first article about OlympusDAO, it was selling at $350. I bought some tokens, and I was wondering whether a project running with an APY of 15,000% could actually be real and not a scam. I even mentioned it here on HIVE.
Quickly afterward, the APY dropped to approximately 7000%, and it has been moving around that level since then (and it will decrease further in 2022). Since then, OHM has touched $1200 in price, but now it is back almost where it started, at $400.
Walking in the footsteps of OHM there came lots of forks, and the most famous of them all is Wonderland (on Avalanche). In fact, I think it just passed OHM in market cap a few days ago. I first learned about this project when the price was $2500, it then touched $10,000 on top, and now it is back at $3000.
And then you have other projects, like Jade Protocol. I bought my first JADE token at $400, and now it is trading at $75. That is one brutal price decline, at least if you see it from my perspective, buying on the top. And that is really the subject of this article... will the crazy APY finally beat the loss due to price decline, and how much time will it take?
Will the APY of the DAO beat the price decline? (with JADE as an example)
So, let us say that I bought 10 JADE tokens for a total price of $4000. Now those tokens are worth $750. However, since I bought the tokens 7 days ago, those 10 tokens have turned into 12 because of the crazy APY. So, the total value of my JADE stake is $900. If the Jade price remains at $75, how long time will it take for my stack to reach $4000 in value?
Using the Jade calculator at the website, I can see that it should take me approximately 80 days to reach $4000 in value with the current APY and if the price remains at $75. But, one shouldn't forget that when the snowball starts to grow, it will happen quickly. If the price remains as it is today, the stack will be worth $10,000 in 120 days. And in 200 days, $56,000.
Of course, this will most likely not happen like this, because as the stakers are rewarded heavily, the price will most likely go down. But, even if the price should drop to $10, I will reach $4000 value again in 160 days. So, seen even from the darkest perspective, these protocols will reward you for being early, no matter if you bought cheap or on the top, and you should reach zero and later profit if you just wait patiently.
What do you think? Are you in loss or in profit with your DAO investments?
Want to learn more about the different OlympusDAO forks? Take a look at this interesting experiment: https://www.ipaddressguide.org/jade-vs-time-vs-spa-vs-fort-vs-gyro-vs-sb-vs-hec-vs-papa-vs-klima-vs-wagmi-vs-tac-which-is-the-best-project-where-to-invest-background-information-and-a-real-time-experiment/