There are daily posts about Anchor's yield reserve. The 19.5% APY is burning up the reserve but noone has seemed to calculate the sustainable rate.
- Over the last 10 days, the yield reserve has seemed to decrease by about $1m per day.
- Based on $5.5b in anchor earn, and 19.5 APY - there is $2.7m paid out daily (assuming APY is compounded daily - will edit once I'm corrected)
- so the sustainable daily payout is about $1.65m
- and the sustainable APY is 11.6%
11.6% APY would be a good return on my "growth" investment portfolio.
Im specifically talking about Anchor protocol - they have crazy hight returns - right now around 20%, and guarantee at least 18%. How is this possible. I have seen mention that the income comes from staking your funds in various tokens, but dont most staking rewards decrease as amount staked increases? So over time, wont staking rewards across the board trend down as adoption increases?
Im just incredulous at the claims that you can get 18% forever from something like Anchor. Im worried that if I invest, Ill have to constantly rebalance to the newest thing to get continued high returns. Is this the case? Or is there some magic that Im missing that allows Anchor to sustainably attain 18% APR longterm?
Looking for reasonably safe, sustainable yields for a portion of my core position to put into defi. Things like lido staking -> stETH yearn vault. Thanks
WHEAT is the token used to incentivize the products of the GrowthDeFi ecosystem. In exchange, a large portion of the revenues are directed towards buybacking and burning it, the ultimate goal is to make WHEAT deflationary
he short term and long term goals of WHEAT:
Throughout the earliest launch period the emissions of WHEAT are used to incentivize users to deposit their LP tokens into the protocol, the purpose of this is to quickly accumulate large balances in the Fee Collector contracts that constantly buyback and burn WHEAT.
The longer term goal for WHEAT is having emissions of it to continually incentivize the different products offered whilst being deflationary, deflation in WHEAT happens when the buyback contract is buybacking and burning more WHEAT than the emission rate at the time.
WHEAT's unique sustainable model:
The typical farming uses up any existing revenues to automatically buyback the token, however the point in time where the protocol is making the most revenue is usually also the point at which the token price is the highest, this makes the effective buyback amount negligible compared to the tokens being issued.
When the price of the token eventually crashes down so does the TVL/volume of the protocol and as a direct consequence the revenue of it, the result is that no matter the current state of the protocol it never has enough revenue to buyback more than what it's issuing.
This is where WHEAT innovates:
https://preview.redd.it/9r4vy6w3b6t61.png?width=861&format=png&auto=webp&s=793cbdba71184b7b5262d8a8682733ffcc7cdc99
WHEAT's main revenue source comes from deposit and performance fees, the deposit fee builds up the balances of the fee collector contracts very quickly and the user is less likely to withdraw their funds if there is a deposit fee.
The performance fee capitalizes on the higher likelihood of TVL staying within the protocol and generates a more consistent revenue source.
Deposits Fees (Big & Inconsistent)
Performance Fees (Very reliable)
In the case of PancakeSwap strategies this fees are paid in LP tokens, they go to the fee collector contract which in turns harvests CAKE regularly and uses it to buyback WHEAT & GRO.
As a result of this setup the amount of WHEAT being bought back is dependent on the profits generated by all the fee collector contracts, not the direct revenue of the protocol.
This leaves three scenarios depending on what the price of WHEAT does:
Scenario 1
... keep reading on reddit ➡I'm curious about this stock I ran into. It makes most of its cash from its interest/investments in other companies and holds $0 in debt... but what is wrong with it? It seems "Too good to be true". Opinions?
Positions in company: N/A (Don't have any yet but planning to buy 100 - 200 shares ($46 - $92 worth tomorrow giving me a total return of $8.00 - $16.00 yearly) Just wondering what other's think of this
Basic info:
- Ticker: NWX.V (Newport)
- Price (As of writing this): $0.4600 CAD
- Yield: 15.22%
Finances:
- Earnings: 2017 | 2018 | 2019 | 2020:
- $0 | $0 | $0 | $0 (MORE ON THIS BELOW)
- Revenue: 2017 | 2018 | 2019 | 2020:
- $2.41M | $2.43M | $5.61M | $5.94M
- Free Cash Flow: 2018 | 2019 | 2020 | TTM
- $3,223 | $5,606 | $7,227 | $5,999
- Operating Cash Flow: 2018 | 2019 | 2020 | TTM
- $3,223 | $5,610 | $7,240 | $6,012
- Debt: $0
- Gross Profit: 2019 | 2020 | (TTM) :
- -0.874 | -3.657 | -3.816
- Net Income / Available to common shareholders: 2019 | 2020 | (TTM):
- $5,606 | $5,938 | $5,727
Company Values/Investor Highlights:
- Dividend paying - Always good to see
- Well financed, no debt
- 2.5% Royalty over several oil and gas permits in Australia
- Active exploration by excellent operators in Cooper Basin
- Operators: Beach Energy and Santos
- Royalty covers both oil and wet gas projects
- Several new oil fields discovered since 2015
- Owns a 100% interest in Chu Chua massive sulphide deposit in British Columbia
Explaining the $0 Earnings and Dividends/Yield:
NWX gets its cash from Royalties and its 100% interest from its investments, specifically, from two companies. NWX can't make decisions in the Cooper Basin but does make royalty from the company on a Quarterly basis (This cash is then used to pay shareholders their dividends).Specifically:
- 100% interest in the Chu Chua copper-gold project located to the north of Kamloops, British Columbia, Canada.
- 2.5% gross overriding royalty interest on oil and gas permits in the Cooper Basin in Queensland, Australia.
Quote:
>As stated in a Company News Release dated March 12, 2021, the Company retains the option of increasing the quarterly dividend at any time, as it did in December 2020 with the tripling of the scheduled quarterly dividend amount. **The Company's strong balance sheet ensures that it has the ability to not only maintain regular $0.01 per share quarterly dividend payments, but
... keep reading on reddit ➡Polyshield.finance is a 6 week old yield farm on Polygon and it's smashed it since launch. Winning the official Polygon hackathon and being officially supported by the Polygon Developer team, Poly has reached a total of 11 Million in Total Value Locked and released 10 farms / vaults.
Being Safe, Secure and Sustainable is the name of the game for Polyshield.
Polyshield has 8 Farms and 9 Vaults, ranging from stable coins to partner coins like POWER, ELK, KOGE etc. You can even use the Evobridge they've partnered with to stake your $CAKE!
Poly is rug proof, auditted by Paladin/Haze and KYCd via Rugdoc. There is only a 4% fee on non native farms and vaults and the team hold ZERO team tokens. The market is organic.
They're having a third AMA with Decentralized Club, a 30k member community at 16:00 UTC here: https://t.me/decentralized_club if you're still not convinced ;)
Official Links:
Website: https://polyshield.finance/
CoinGecko: https://www.coingecko.com/en/coins/polyshield
CoinMarketCap: https://coinmarketcap.com/currencies/polyshield-finance/
Telegram: https://t.me/polyshield
Hope to see you in the vault!
