So let's say solo staking is 5% avg Apr And the

Question

So let's say solo staking is 5% avg Apr And the

borrow rate is 4%

That's a 20% spread right?

So if you take your 32 eth and split into 8 validators you're now making 40% (5 x 8)
But you have to pay back the loan so your take away is 20% of that

40 x 0.2 is 8

You got 8 instead of 5, you now are a node operator making 60% more than solo staking

#cryptocurrency #english #frax

0

03.08.2023

10 ответов

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Mark11

msb

Wont apy be 12 instead of 8% at 4% interest?

Now he is bullish

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03.08.2023

msb

Mark11
Now he is bullish

How did you interpret that as bullish? I am merely plugging the 4% interest Imo interest will be slightly (few bps) below staking yield Will see when it goes to production

0

03.08.2023

C2tP Автор вопроса

msb
How did you interpret that as bullish? I am merely...

In that example you're making 12 instead of 5 How is 12 below 5?

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03.08.2023

msb

C2tP
In that example you're making 12 instead of 5 How...

Me thinks to wont be 4% thats what am saying Unless people perceive the risk profile similar to a lending market (i.e aave)

0

03.08.2023

C2tP Автор вопроса

msb
Me thinks to wont be 4% thats what am saying Unl...

It will be as high as operators are willing to take to gain profit on the spread. If spread is against them then they just exit as validator which reduces rates

0

03.08.2023

C2tP Автор вопроса

msb
Me thinks to wont be 4% thats what am saying Unl...

It LITERALLY is a lending market

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03.08.2023

droid1

C2tP
It LITERALLY is a lending market

yes big shift Mindset that stablecoin issuance is debt based, maker frax are longterm the new avve compound, imo they legacy tech. issuing against shitcoins ain't worth it

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03.08.2023

AnT

Take 32 ETH to split to 8 validators >> 5% staking reward can then be multiplied by a factor of 8?? Why???

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04.08.2023

Mark11

AnT
Take 32 ETH to split to 8 validators >> 5% staking...

Explainer here https://twitter.com/StableScarab/status/1678512409470996481

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04.08.2023