How do you Auto-Compounding?
If you are a DeFi user, do you often hear the word Auto-Compound these days?
What is compound interest?
“Compound interest is one of the methods of calculating interest, which is a method of incorporating interest into the principal at regular intervals and calculating interest on that principal. It is a method that takes into account the return of interest reinvestment. , There are 1-month compound interest, 6-year compound interest, 1-year compound interest, etc., depending on the period during which interest is added to the principal.
For compound interest, the method by which interest is calculated only on the original principal is called simple interest. Comparing simple interest and compound interest, compound interest bears interest, so the final total amount of interest increases, and the longer it is used, the greater the effect. This is called the compound interest effect. ”
The important thing here is that these tasks are not performed artificially, but are automatically performed by smart contracts. This allows users to earn passive income without having to check their PC or smartphone every day (hourly). And yes, Currently, many DeFi platform strategies are Auto-Compound.
Method of calculation
So what happens to your assets a year later if you simply use a compound interest calculator to invest $ 10,000 today? Let’s take a look at this.
BUSD-USDT LP : Daily APY is 0.08%
Now, let’s calculate using a calculator.
After a year you will earn $3,389.47 so it’ll be $13,389.47.
Not bad?
BSW-USDT LP : Daily APY is 1.33%
This Farm shows high APY, but it also has a high volatility, so be careful. The displayed APY is actually difficult to last long, but let’s calculate it as long lasting.
Over $ 1 M!
This is compound interest magic and explosive power. (It is not realistic to actually maintain this APY, so please use it as a reference only.)
As you can see, compound interest has great explosive power.
So what kind of platform should we use to actually take advantage of this automated compound interest strategy?
Autofarm / Beefy Finance / PancakeBunny
Currently part of a high APY and reliable platform.
Now let’s compare the APYs of these platforms.
Comparing these, we can see that Aries’ APY is very high.
ARIES FINANCIAL
ARIES FINANCIAL Yield farming V2 is an yield aggregator compatible with Binance Smart Chain (BSC). V2 is a yield farming platform focused
on providing optimal automated compound interest operations for DeFi users, yield farming through code-audited smart contracts and yield
optimization strategies for the best APY. This yield farming is part of the BSC ecosystem and allows you to earn more LP tokens by depositing
them in ARIES FINANCIAL.
Participating in ARIES FINANCIAL is relatively easy. You can start Yielf Faming by creating and depositing LP_token for BNB and USDC assets using Zap.
The APYs mentioned above are current and do not necessarily last forever. Please understand this point before making an investment decision within the range of risks you can take.
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