As I enjoyed some time with the family the last couple of days I always tried to claim around the correct time of the day to get most profit out of my Furio investment. Of course this didn’t work out as I have hoped for. I don’t use auto-compound at the moment. Although this would be a solution to it, I have to admit. I was just thinking this moment, what would actually be the effect on the Furio protocol if I would compound not once, but twice a day? Does this have any big impact on the compound interest? And if yes, is it worth the effort?
Lets calculate this through: Lets stick with the example of an initial investment of 20 $FUR tokens, a bit more then 100 USD currently. Lets also assume you are part of the 2.5% club. So there is a need to compound for 28 days without a single claim to get to the 2.5% as you start with 1.75%. The example is a bit theoretical, I admit, but to visualize if it is worth the effort, we like to keep things simple.
So what is the impact when we compound two times a day instead of just once? Will we reach the max. amount of 27,778 tokens in a wallet much quicker? Is it worth the effort?
As you see, if you compound on a daily basis, you will reach the max. amount in your wallet after about 294 days. Compared to the other scenario, where you compound twice a day, you obviously hit your target earlier. But only about 2 days. That was a bit a surprise to get to the goal not much faster, given you got, if you compound manually, twice the effort.
I did the same calculation with an initial deposit of 100 $FUR tokens to see if the difference is increasing. Nope, actually the opposite: It got even smaller. If you compound once, you reach the 27’778 tokens after 228 days, if you compound twice, roughly after 227 days. So one day earlier.
So is this a strategy worth following? I highly doubt it, given the additional time and effort and lets not forget the gas fees too here, that you have to put into it. Honestly, I expected to reach the goal way earlier with the additional effort. Well, numbers don’t lie, hence i calculated it through to see if it is worth it for me.
Is it worth it for you? Only you can decide here. Again, numbers don’t lie.
Are you also interested in gaining 2.5% daily on your investment? Are you looking for a team to join or just like to follow me on that Defi journey? You are very welcome to join me by using below link and address:
Team address: 0xb3C253D80578f569cFd4fe2E916EDbF01B384577