Good morning Splinterlandians!
I wanted to take a quick moment and highlight some of the math that floats around in my head on a daily basis
Now please understand I view Splinterlands in several different and unique ways:
- My favorite P2E game and community
- Token/Assets that will appreciate (staking/nodes)
- NFTs for passive rental income (RSCs for high RoA%)
This means I have several different targets for my fresh capital ($USD earned from working), when I put it in (weekly) and where I reinvest gains from staking/nodes/rewards and more...
Currently, my goal is to aggressively grow my Rental Specific Card (RSC) collection so next time we have a huge influx of players, I will be set up to maximize profit from it 😁
I treat the RSCs as a business and when purchasing them I want to ensure I am getting a card that meets a few criteria:
A.Is the card currently getting solid RoA%?
I mean, if it isn't... why would I even consider it? There had better be a significant amount of other positives for me to snatch these up with fresh $$...
B. Is the card likely to appreciate?
That's... a slightly disturbing GIF lol... but seriously is the card likely to appreciate vs tank?
There's a couple things I like to look at when making this decision and they include:
- Current price vs price over the last month
- Amount of cards avail vs % of set opened
- See below
This is important because if a bunch of cards suddenly hit the market... the price may drop... If the price is X with 10% of the set open... vs X with 90% of the set open... Then the 90% card has a LOWER chance of dropping in price due to SUPPLY... outside factors like the overall crypto market can change that price rapidly.
C. Finally my third and final criteria, which is tied into my previous bullet point...
- Is the card PLAYABLE playability creates demand... sure... after the Land WP came out, players realized that GF Legos were needed and the Floor Price of a junk GF Lego (Djinn Bjilka anyone)... shot up to about $50 from $15...
However... the junk GF Legos rent TERRIBLY - like 5% RoA sometimes 🤢
Whereas playable cards tend to rent at 50% RoA or greater, even on the first day of the season...
Now that you have some of the criteria I use, let's talk about that math I mentioned...
You can't use a bunch of data to calculate RoA% via several websites but that often means looking at several pages and takes a bit of time/calculation...
An easy way for me to calculate RoA and if it's a decent buy... is how many DEC/d does the RSC give me PER $USD...
As in... If I buy this card... for $1... how many DEC per day will it rent for?
So far, what I have found is that you can "tier" out a card by DEC/d:$USD and get a rough approximation of RoA% by doing so...
Let's look at what that looks like
If you see that your $1 = 1 Dec/d... then you can extrapolate to see what kind of gains that translates to daily ($USD) and yearly (DEC & USD & RoA%)
Current Price of 1,000 DEC = $.819 USD:
1 DEC/d = 365 DEC/y = 365DEC * $.816 = $.298/y or roughly 30% RoA...
Wait... wait... wait... WHAT? Hol' up...
Yeah... that's right... the math problem that lives RENT FREE in my head at almost ALL TIMES is that you can get a pretty good idea of RoA%... AT A GLANCE... by understanding the $USD:$DEC/d ratio!
$1 = 1 DEC/d... 30% RoA
$1 = 2 DEC/d... 60% RoA
$1 = 3 DEC/d... 90% RoA
Again - math... watch closely 😄
If $5 Invested... Equals 15 DEC/d in rentals...
15 DEC/d * 365 = 5,475 DEC/y
5.475k DEC * $.819 = $4.48 USD/y
$4.48 = X% of $5.00??? Well... that would be 89.7%!
There you have it - a quick and simple way to relatively accurately estimate RoA% of a RSC... AT A GLANCE!
To me, that is such a time saver!! I don't have to sift through pages of data, use calculators or anything else... just do the $USD:DEC/d ratio and BOOM - decision made.
I hope this helps you filter out which cards you're buying for the Rental Market and stay tuned for more tips and tricks from your favorite idiot - me.
Bonus: this math also let's you figure out yearly income in whatever currency you're using... and lets you figure out how much $$ to invest to hit certain tiers...
If I make 10k DEC/d in Rentals... that's 3,650,000DEC/y...
3,650 * $.819 = $2,989/y in Rental Income...
Or in reverse... How much $$ would I need to invest to earn 10k DEC/d?
Goal = 10k DEC/d
$1 = 1 DEC/d = $10,000
$1 = 2 DEC/d = $5,000
$1 = 3 DEC/d = $3,333
$1 = 4 DEC/d = $2,500
etc, etc, etc...
For me, my next goal is 10k DEC/d during the regular parts of the season and I'm halfway there... I am making progress... slowly but surely...
I try to target cards that have a 3:1 Ratio or greater and meet all the other criteria...
That means I need roughly $1,650 more invested to hit my 10k DEC/d goal!
Going bigger... to hit 100k DEC/d I would need a total of just over $33,000 invested... That will take time and persistent Investment + Reinvestment of earnings... but I believe it is doable!!
Although I loathe to do the math and see how far away I am... 100k DEC/d would be absolutely amazing... 😍
Anyways... that's all from me, good day for now!
Cheers 🍻,
- CaptainDingus
