Thursday, December 8, 2022

Math pop-answer: a pert solution

The solution to the conundrum that Kyber offers sAVAX-AVAX LP incentivized yields at 17%, but only for 6 days verses Trader Joe's sAVAX-AVAX LP incentivized rate of 6.5%, but no termination set on that incentive.

$10k at 17% for 6 days: P*exp(r*t) ('pert' formula): $10,027.98
6.5% for 6 days: $10,009.87

gain: $18.12 (0.2%)

However, after 6 days, Kyber's interest may drop to 3% (unincentivized rate), whilst Trader Joe's stay at 6.5%

∴ I'm not moving $10k for less than $20 then a loss

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