93 [THOR] $THOR Staking Reward + APY
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Intro
The new $THOR single-sided staking contract launched recently. It brings along the following benefits (from):
- $vTHOR token: Stake $THOR tokens to receive $vTHOR tokens, a composable and transferrable representation of your staked $THOR position.
- Additional Staking Rewards: Legacy Staking Rewards came purely from emissions of the Community Incentives. Staking 2.0 Rewards are a culmination of Community Incentives emissions plus 75% of all THORSwap revenues.
- Auto-compounding Staking Rewards: Staking 2.0 now features automatic compounding — your staking position will receive daily rewards and auto-compound without any user action. You no longer need to repeatedly claim and re-deposit, saving you gas and helping you to earn more rewards.
- Trading Discounts: THORSwap users holding $vTHOR will be entitled to Exchange Fee discounts. To celebrate the launch of $vTHOR, for a limited time, THORSwap Exchange Fees will be 100% waived for everyone staking $THOR + holding any amount of $vTHOR!
Methodology
- To find the staking return I looked at the THOR → vTHOR ratio. Since the returns are auto-compounded, this ratio changes over time and represents the accumulated yield.
- The day to day changes in this ratio represent the daily yield.
- From this daily return, we can plot the annualized yield.
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- On an annualized basis, the returns started at an astronomical ~36K % and have come down to around ~100% more recently.
- By looking at the change in the THOR → vTHOR ratio, we can see that so far THOR stakers have got nearly 9% return. That's not a bad return considering we're less than a month into the launch of THOR staking.
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Observations
> NOTE: I'm using the log-scale to compare the really large return on the first day with the smaller daily returns later.
- The first day started out with 100% average daily return but that was quickly brought down to less than 1% return daily.
- On average, we're seeing around ~0.50% daily return but it has dipped below ~0.35% in the last couple of days. This is because more users have been staking their THOR.
Conclusion
- The THOR stakers have been enjoying high yields so far in excess of 100%+
- Since launch, the THOR stakers have gotten nearly 9% yield so far (non-price adjusted).
- Once we adjust the yield for THOR price, the stakers are net negative as the price of THOR has fallen by nearly 50% from ~$0.9 to ~$0.45. Therefore, most of the stakers who got into staking