Ape Staking My Earnings and Calculator FAQ

FAQ

How is my Net APY calculated?

The NET APY displayed under My Earnings represents the current true yield of your stake across all four staking pools (single-sided APE/BAYC/MAYC/BAKC).

It takes the reward given out by each pool, the automatic compounding that maximizes its yield, as well as any interests that are being paid for the amount of borrowed $APE (if applicable) into account. Essentially it takes the rate of reward of the staking position(s) and minus the interest rates that is being charged for the borrowed amount.

It is an indication of how much you are currently earning with the cost of borrowing already reflected.

I am borrowing $cAPE/$APE to stake. How do I reduce my borrowing costs?

When borrowing $cAPE/$APE from Parallel to stake, the interests being charged can negatively impact your overall return if left unmanaged. This is while reward compounds, the borrow interests is also compounding.

To maximise return, it is actually possible to minimise your borrow interests by repaying the outstanding debt regularly using the reward earned. This is to prevent the borrow interests from compounding, therefore increasing your borrowing costs exponentially and impacting your overall Net APY.

Does my staking amount affect auto-compounding?

Yes. If there is an insufficient staking amount, the reward earned from the stake to be compounded is smaller than the gas required to auto-compound.

For example, if you stake is only yielding $20 dollars worth of $APE and it requires $20 dollars worth of gas fee to auto-compound, it then would not make sense to compound.

In this case the compounding frequency would have to be increased, therefore affecting the compound APY.