I have written a thread on pricing $yLUNA - it might be a bit difficult to follow, unless you love math.
Below a simple formula anyone can calculate.
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Below a simple formula anyone can calculate.
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https://twitter.com/AgilePatryk/status/1450863567826194433
The only assumption:
Anchor rate is considered risk-free and equal to roughly 20% APY.
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Anchor rate is considered risk-free and equal to roughly 20% APY.
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With that assumption:
$yLUNA = 5 x LUNA_staking_APY
$pLUNA = 1 - $yLUNA
both expressed in $LUNA terms.
Example below.
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$yLUNA = 5 x LUNA_staking_APY
$pLUNA = 1 - $yLUNA
both expressed in $LUNA terms.
Example below.
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Current $LUNA staking rewards stand at 9.19% APR (including airdrops). That translates to 9.63% APY.
$yLUNA = 5 x 9.63% = 48.15% = 0.4815 $LUNA
$pLUNA = 1 - $yLUNA = 0.5185 $LUNA
Simple, right?
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$yLUNA = 5 x 9.63% = 48.15% = 0.4815 $LUNA
$pLUNA = 1 - $yLUNA = 0.5185 $LUNA
Simple, right?
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Ever wondered why in most of the tweets people assume 50:50 price ration of $pLUNA and $yLUNA?
Well, the explanation is right above. 👆
If we assume 10% staking rewards, the price of $yLUNA is 0.5 $LUNA, and so is the price of $pLUNA.
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Well, the explanation is right above. 👆
If we assume 10% staking rewards, the price of $yLUNA is 0.5 $LUNA, and so is the price of $pLUNA.
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Please RT the first tweet and share with your frens if you liked it!
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