How To 168X Your Returns on PancakeSwap
The PancakeSwap app shows the APY you can get from it’s various farms, what most people do not know, is that it is actually showing the APR, not the APY (yes, I’ve done the math).
What’s the significance of this? APR does not take into account the effect of compounding, while APY does. For example, the farm with the highest return now has an APR of 708.9%. This means that with $100 invested at this rate of return, you would get a return of $708.90 after 1 year. Of course, due to the tokenomics etc, this APR will not hold over a year, but let’s just put that aside for the moment. So how much of a difference will compounding make? Compounding an APR of 708.9% on a daily basis, will result in an APY of (1+708.9%/365)³⁶⁵ = 111,994.80%. Yes that was not a typo. You get an effective APY of 157.98X the APR. How about compounding on an hourly basis? (1+708.9%/(365*24))^(³⁶⁵*²⁴) = 119,527.69%. That’s 168.61X the APR.
Hence these stickers on the PancakeSwap Telegram:
So, how is one able to live their lives and spend time with loved ones, and still farm their $CAKE 24/7 to 168X their returns? ̶W̶e̶ ̶b̶u̶i̶l̶t̶ ̶a̶ ̶b̶o̶t̶ ̶f̶o̶r̶ ̶o̶u̶r̶ ̶c̶l̶i̶e̶n̶t̶s̶ ̶t̶o̶ ̶a̶u̶t̶o̶m̶a̶t̶e̶ ̶t̶h̶e̶i̶r̶ ̶f̶a̶r̶m̶s̶,̶ ̶w̶e̶ ̶e̶v̶e̶n̶ ̶s̶h̶a̶r̶e̶d̶ ̶a̶ ̶s̶i̶m̶p̶l̶i̶f̶i̶e̶d̶ ̶v̶e̶r̶s̶i̶o̶n̶ ̶f̶o̶r̶ ̶a̶n̶y̶o̶n̶e̶ ̶t̶o̶ ̶u̶s̶e̶.̶ ̶T̶h̶e̶ ̶q̶u̶e̶s̶t̶i̶o̶n̶ ̶i̶s̶,̶ ̶w̶o̶u̶l̶d̶ ̶y̶o̶u̶ ̶d̶a̶r̶e̶ ̶u̶s̶e̶ ̶i̶t̶?̶ ̶Y̶o̶u̶ ̶r̶e̶a̶l̶l̶y̶ ̶s̶h̶o̶u̶l̶d̶n̶’̶t̶ ̶t̶r̶u̶s̶t̶ ̶a̶n̶y̶o̶n̶e̶ ̶w̶i̶t̶h̶ ̶y̶o̶u̶r̶ ̶p̶r̶i̶v̶a̶t̶e̶ ̶k̶e̶y̶s̶.̶
Update: we launched ACryptoS Vaults on 1 November 2020, automating yield farming on PancakeSwap and Venus Protocol.
x / ACryptoS
- https://acryptos.com/
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