Thread by @animocaresearch

1/ With the upcoming $APE staking protocol launch, we have prepared an analysis to look at the amazing job @HorizenLabs done for @apecoin , and how it can benefit the #APE community, a 🧵:

2/ The staking protocol will last for 3 years with 4 staking pools, one each for BAYC, MAYC, BAKC (collectively as "NFT") & non-NFT holders, the pool size for #BAYC holders is the largest (47%), followed by non-NFT holders (30%) , #MAYC holders (19%) and #BAKC holders (4%).

3/ #NFT holders have a max staking cap equal to the amount of $APE they received from the initial airdrop, while non-NFT holders have no staking cap.

BAKC also have to be paired with a BAYC or MAYC in order to be staked.

4/ Parsing data from @DuneAnalytics , we found that 91.4% of NFT holding wallets don't have sufficient $APE to meet the max staking cap, suggesting a huge potential buy pressure of $APE.

5/ The staking APR based on current amount of $APE across all NFT holding wallets is also extremely lucrative, ranging from 193% - 390%.

We assumed NFT holders would first stake into BAYC then MAYC then BAKC pools, thus the later pools have a higher APY due to less $APE staked.

6/ In reality, the APR could be even higher if there are less participation in the staking protocol. However, we assume increasing amount of NFT holders would be attracted to stake by the high APR, and ~80% of NFT holders would stake at ~90% max cap eventually.

7/ Assuming NFT holders continue to stake at 90% max cap & no. of stakers decrease by 50% per year due to lower rewards, the final APR (without accounting for current cost of NFTs) will remain at similar rates throughout the staking period and across different NFTs at 72% - 74%.

8/ Following our assumptions above and discounting the buy pressure by 50% to account for $APE holdings in external wallets, it will generate a buy pressure of 41.9 Mil. $APE, which equals to ~10.7% of $APE circulating supply.

9/ Taking into account buy pressure and monthly token emission, we can derive the net token demand of $APE. Our research indicates that net token demand of 34.5 Mil. $APE from the staking protocol dwarfs the net token demand of 9.4 Mil. $APE from Otherdeeds.

10/ The staking protocol will likely drive high traction into $APE, #BAYC , #MAYC & #BAKC communities, placing @yugalabs into the spotlight to launch new utilities for the wider ecosystem.

11/ To summarize, $APE staking protocol provides extremely attractive yield for early adopters and slowly declines as participation increases. This also paves way for @yugalabs to enlarge the ecosystem and promote future developments.

Bullish about the future. Let's go #web3 !

12/ ⚠️ The NFT acts as a safe that holds your staked $APE, if you sell your safe without removing the $APE inside, the new owner will have access to the staked $APE & rewards within the safe.

✅ Remove your NFT listing before staking, and always claim & unstake before selling.