So I ran the calculations and it turns out that LasseCash pool pays around 400% APY currently and PUPPY pool, wait are you sitting?, 55 billion %!!
Wait is that realistic? Right now that is what is happening, but it should go down over time, especially for PUPPY. The free market always find an equilibrium and since this is so new, the APYs are so high.
I would say that APYs between 25%-1000% is more realistic in the mid to long term on these two pools. Its still higher than HBD and if LASSECASH token goes up, which seems realistic now, let me explain why, then its a much better investment to be in LASSECASH than HBD.
Because of these high APYs on the pool, it gives a strong incentive for new investors to invest in LASSECASH and PUPPY and provide liqudity to the pools. To do that they will need to buy the tokens unless they already have them, and if they have to buy the prices goes up. See this setup is created for gains, its a positive feedback loop. Because if the prices goes up the rewards might get better, actually its a complicated calculation, but with more liquidity there will be less risk and the APYs will go down a little.
Its actually wierd to me that these APY levels has been there for such a long time, without more capital flowing in. There is two possible reasons for this in my mind. 1. People dont know how to calculate this APY and dont understand how good it is? 2. The market value the risk of this investment to be very big.
Both of those two reasons could be resolved with education and rational actors entering the market. Because that calculation is not that hard to do, you just add the rewards together and divide that number with the liquidity, then you have the daily rewards in percent. Then you add 1 and take it to the power of 365, then substract 1 and times by 100, then you have the APY percent.
The other reason is also irrational, since LasseCash is a very strong product, with many features. The product have product market fit and should therefore have a high stable value.
Not to mention what will happen ones the other related tokens get Diesel pools, then the rewards will go up again. You better prepare for this, you can do that by buying up those tokens cheaply before pool launches, so that you can get in early for more rewards.
Let the free market do its work.
Lasse Ehlers
Posted using LasseCash