Looking at the COTI Treasury (380 Million) today the Total treasury COTI Staked is still down from where it was (388 million) when the liquidations happened. This gives me an idea of the time line we have left before the APR returns to normal and I would estimate anywhere between 8-14 days. The 12 million COTI tokens that were liquidated has seen roughly 30% distributed already.
I mentioned last Saturday how the last market correction positively impacted my earnings on COTI to the tune of 86.48% having risen from what was then a 14.43% APR. Today that APR is still at 82.95% and has only dropped by 3.53%% over the last 4 days which is quite remarkable. On Saturday my rewards were roughly 488 COTI per day and today they are 481 COTI so they have not really dropped that much.
How the COTI Treasury works is there are 4 pools with Level 1 being a no risk pool with a base APR. The other 3 pools offer a higher APR, but there is risk attached to the higher rewards through liquidation. If a stake is liquidated it is then shared amongst the investors in Level 1. Normally in the past when this happens we receive and extra boost for a few days through a higher APR and then it drops back to normal.
WE are 4 days since we saw all the liquidations and the APR having only dropped by 3.6% over the last 4 days does show the volume of liquidations. This is unheard of and never seen before type numbers and justifies why it is better to play it safe removing as much risk as possible.
The extra gains I am making now is off the back of other peoples misery fueled by greed and i am comfortable with that as we all have choices we can make. I think it would be gut wrenching to have been building ones stake only to lose it all so close to the end of the cycle.
Many investors thought they were being smart and safe by investing in the less risky Level 2 pool only to find out when there is a proper market correction there is no such thing as safe. Seeing those staked in the Level 2 tier is kind of an eye opener as this has never happened before which corresponds to why the APR being earned now is taking time to drop as the sheer numbers are that big.
Seeing how slowly the APR is dropping daily the hope is this increased APR can last for a few more weeks which will make a large difference to the growth of the stake. Since last Saturday I have claimed and staked 2025 COTI which would have normally been around 340 COTI so this is a 6 x increase in rewards which is rather good.
The plus side is as the accumulation is boosting the stake numbers the daily reward numbers will automatically rise even when the APR is tailing off. I expect to have well over 220K COTI staked by next week which would reflect a real time 5% growth for this short period. Who knows maybe their is a chance of reaching 230K COTI staked by the time the APR returns to normal which would be a 20K window of opportunity that was unexpected.
This would be excluding the extra 1000 GCOTI I will stake later today when we receive the airdrop which will help push the APR back up. This is not a situation that is going to last forever so we need to capitalize on these opportunities and make the most of them. Many investors were obviously wrecked and the pool would have shrunk with the number of accounts staked, but those accounts would have grown in size with regard to the COTI they are now holding so there is more rewards available for those who played it safe. Crypto is along term hold and accumulation game and there are no or very few get rich quick schemes.