Hello EDSers, today we're going to look at what the EDS APY is depending on how you pay for it.
EDS tokens are backed and pegged to 1 HIVE each but it has been a very long time since EDS tokens have traded for 1 HIVE and today they trade for between 1.3 -1.8 HIVE. I assume this is because EDS is a low circulating token that pays out a weekly HIVE income equal to 34% based on a 1 HIVE value.
Because EDS tokens trade at over 1 HIVE each, everyone that holds EDS miners are/and has HP delegated to @eds-vote is receiving higher than projected rewards when valued in HIVE. We can look into this as well.
EDS APY based on HIVE price
Below is a table showing what ROI you should expect to receive depending on how much you paid for your EDS tokens. In this example, i will use the most upto date EDS APY of 34%.
| HIVE Price | ROI per year |
|---|---|
| 1.00 (PEG) | 34.11% |
| 1.05 | 32.48% |
| 1.10 | 31.01% |
| 1.15 | 29.66% |
| 1.20 | 28.42% |
| 1.25 | 27.29% |
| 1.30 | 26.24% |
| 1.40 | 24.36% |
| 1.50 | 22.74% |
| 1.60 | 21.32% |
| 1.70 | 20.06% |
| 1.80 | 18.95% |
| 1.90 | 17.95% |
| 2.00 | 17.05% |
To work it out yourself
- Divide the current EDS APY by the HIVE amount you paid.
- Eg, you bought at 1.20 HIVE. You divide the current APY of 34.11 by 1.20 and get 28.42%
This is bad advice but from my eye, paying up to 1.15 looks ok. You would earn roughly a 30% ROI and have the option to use 50% of your first-year HIVE income payments to buy EDS tokens which would put your investment price per EDS down to a peg of 1 HIVE. The other 50% would secure a HIVE income of 15% and then from year 2 for you, your ROI per year would be a maximum amount at the peg price.
It is a free market and investors can pay what they like but we need to factor in and remember that the EDS APY will decline for a while before it flips and starts to increase.
EDS miners and EDSvote Rewards
These are projected and based on the EDSs peg price of 1 HIVE each. When EDS tokens can easily be sold for more than that then, the rewards in terms of HIVE increase.
For EDS miners - The ROI is set to 20% per year based on the standard lotto model. We do maximum rewards per draw and maximum draws per day to even out the lotto variance as best we can. On average, based on 100% of EDS miners being staked, the APY is roughly 20%.
Below is a table showing the ROI EDS miners could get if they were to sell their mined EDS tokens to take profits.
| HIVE Price | ROI per year |
|---|---|
| 1.00 (PEG) | 20% |
| 1.05 | 21% |
| 1.10 | 22% |
| 1.15 | 23% |
| 1.20 | 24% |
| 1.25 | 25% |
| 1.30 | 26% |
| 1.40 | 28% |
| 1.50 | 30% |
| 1.60 | 32% |
| 1.70 | 34% |
| 1.80 | 36% |
| 1.90 | 38% |
| 2.00 | 40% |
It's easy to see the pattern here. If you are full-on hardcore stacking HIVE and converting your EDS mining rewards into HIVE, these are the ROI you can expect to earn.
At the current price for EDS of 1.3 HIVE, the ROI for those selling mining rewards is currently 25% which is oddly enough 25% higher than the promoted percentage of 20%.
For EDSvote - The rewards for EDSvote are based on 50% of HIVE curation rewards earned by the @eds-vote account. Anyone can delegate any amount higher than 20 HP to receive freshly minted EDS tokes each Monday. Currently, curation ROI is around 8%. 4% of this goes directly to @eddie-earner to help slow down teh EDS APY decline and the remaining 4% is used to back and mint new EDS tokens into circulation.
The APY is not massive but you have to consider the value of EDS long term. Most tokens earned from miners will decline in value over long periods of time but EDS is backed and pegged to HIVE. Taking a lower APY on a better investment today will yield much better results in the future. Inflation and getting diluted is not a factor for EDS holders.
Below is a table showing the ROI EDSvote delegators could get if they were to sell their mined EDS tokens to take profits. These are based on the HIVE curation rewards being 8% and 4% being used to fund EDSvote rewards.
| HIVE Price | ROI per year |
|---|---|
| 1.00 (PEG) | 4.00% |
| 1.05 | 4.20% |
| 1.10 | 4.40% |
| 1.15 | 4.60% |
| 1.20 | 4.80% |
| 1.25 | 5.00% |
| 1.30 | 5.20% |
| 1.40 | 5.60% |
| 1.50 | 6.00% |
| 1.60 | 6.40% |
| 1.70 | 6.80% |
| 1.80 | 7.20% |
| 1.90 | 7.60% |
| 2.00 | 8.00% |
Again, a pattern can be seen here. At the current low price of 1.30 HIVE, the ROI for those selling EDSvote rewards would be 5.2%. At the high price of 1.8 HIVE each, the ROI would be 7.2%. Remember that when you delegate HP, you still earn HIVE POWER inflation which is around 3% per year so your true total ROI would range between 8.2% and 10.2% which is much better.
Hope you found these numbers interesting
These are all the numbers to need to know and should provide you with a good ballpark figure on what your true APYs and ROIs are from within teh EDS ecosystem at the minute.
I truly never visioned being able to run a peg token that sells at such a premium. Back during the 9-month ICO, people used to undercut my selling price to 0.95 HIVE just to sell them faster so to see a complete 180 on that is very satisfying as an operator. @shanibeer does a get job at getting the word out and the message spread and has played a big part in this as well.
With that said, EDS is trading for a premium and I thought i few people would be interested to see these numbers and great a better idea of the true returns on their investments/delegations.
Thanks as always for checking out the post and staying up to date with EDS and all its goings ons. If you have any questions, please ask in the comments below and i'll get back to you.
@eddie-earner content contributed by @silverstackeruk and @shanibeer.
Today's post by @shanibeer writing as @sally-saver.
Many thanks to @raj808 for the banner design 🙂