When you are staking in any crypto project you need to understand where the rewards are coming from in order to capitalise on any opportunities that may exist. Not every thing is as straight forward and simple so you will need to do some calculations in order to understand your investment potential.
Above is one of my staked pools which are all on level 1 meaning there is no risk of liquidation. Level 1 offers a slightly lower APR, but at least the stake is safe which is what is important.
Not exactly true
The APY states 20.63% (12.98 is the APR) which is rather misleading and why I did this post so others who are staked in the COTI Treasury will also understand how their rewards are calculated. I originally thought I would be earning well over 50 COTI daily, but earning only around 30 COTI daily along with 25 GCOTI which in value terms is worth 50 COTI daily. I am still targeting the 50 COTI daily and only by having more stake will that be achieved.
If I was earning 20.63% on 68094 COTI I would be a happy bunny as that would equate to around 14K COTI per year or 38 COTI daily. Then why is it I am only earning 24 COTI per day and not 38? his did not make sense and I originally thought I was being short changed because the one thing I know is my figures.
The answer is in the APY ad why we need to break this down. The APY is 20.63% and is made up of the following criteria.
APY in COTI 4.68%
APY in GCOTI 7.64%
APY BOOST in COTI 8.3%
The 4.68% is the APY for staking 270 days on the Level 1 risk and could have gone for 360 days at 6.16% earning an extra 1.48%.
The 7.64% earned in GCOTI does not apply to the stake, but to the amount of GCOTI I earn each week and I currently receive 141 GCOTI weekly which is 20 per day.
The APY boost of 8.3% is calculated by the amount of GCOTI staked vs the COTI staked and is what increases your daily COTI rewards.
So summarizing this the 20.63% is being earned overall, but only 12.98% is being earned directly on your COTI stake with the balance of 7.65 % on your GCOTI stake. GCOTI is at around 0.86c each and is still a good investment so earning 171 GCOTI weekly is still very decent along with the boosting effect it offers.
The more you earn and stake the more you earn as both the COTI and GCOTI numbers rise gradually over time. The other factor I did not mention is the Trust score which reflects your activity within the Treasury ad also affects the amount of GCOTI tokens you earn each week.
What is important is the growth mainly down to the fact that when the new COTI V2 token replaces COTI in Q4 those staking COTI will benefit more from the airdrop and swap out. The airdrop is calculated on how active you have bee over the entire period along with the size of stake you have. This should be a high percentage and one that will be worth all the effort now. No one knows what the values will be worth in the future ad all we know is they will be worth far more than what we are seeing today.