For a while now I wondered what the APY on $HBD in savings would be if you just compound the monthly dividends.
The APR is 20%, but that assumes that you take the monthly dividends out. Otherwise they start to generate their own little bit of dividends next month already.
So, I decided to ask chatGPT
I asked:
The hive blockchain has a stable-ish coin called HBD that, when put in savings, generates 20% apr through monthly payouts. Because payouts are monthly, the yearly apr is higher when you compound the monthly payouts. What would be the yearly apr if you compounded the monthly payouts?
It’s answer:
- To calculate the annual percentage yield (APY) with monthly compounding, we can use the formula:
APY = (1 + (monthly interest rate))^12 - 1
where the monthly interest rate is the annual interest rate divided by 12.
In this case, the annual interest rate is 20%, so the monthly interest rate would be:
monthly interest rate = 20% / 12 = 0.0166667
Now we can plug this into the formula to find the APY:
APY = (1 + 0.0166667)^12 - 1 = 0.2214 or 22.14%
Therefore, if the HBD stablecoin generates a 20% annual percentage rate (APR) through monthly payouts that are compounded, the yearly APY would be approximately 22.14%.*
This is so nice! Before I would have been trying to construct something on excel, but I wouldn’t have been sure. But now I can explain what I want and I get an answer that includes the calculation required to give the answer.
Now I don’t just have an answer to my question, but I learned something!
unfortunately the answer is wrong! See the comment from 
below.
This technology is going to change our lives faster than any technology before it has done! Make sure you stay up to date on AI in whatever your field of expertise is, or you might be out of business/job very quickly! And remember that it is not perfect!!