The folks behind MusicForLive.io are really hard working and innovative folks. Not only have they opened the #musicforlive tribe, they have also created a defi farming platform VFTLab.fiance. They are creating an integrated ecosystem where each part helps support the other, and other music related ventures like #risingstar.
I have been staking my #starbits, #dec, #vibes, and my farmed #vft for a week or so, and while I am pretty happy with the #vft earned I wasn't sure exactly what kind of return I was getting as the UI doesn't show APR. That is something in their "to do list", but it isn't out yet.
So yesterday I pulled out the spreadsheet and started making some calculations.
But First Lets Define APR and APY
Annual Percentage Rate (APR) is the straight interest rate you are earning. If the APR is 10%, and you have $100 invested, and you don't do any compounding, at the end of the year you will have earned $10.
Annual Percentage Yield (APY) is the % growth your investment will see taking into account compounding from re-investing your earnings. The calculation is a bit more tricky.
For daily compounding, which is what we have for VFTLab
n = 365
r = the APR (fractional, not %, so 10% should be entered as 0.1)
How I made the Calculations
The calculation of Annual Percentage Rate (APR) is pretty straight forward. I multiplied the amount of tokens I had staked by the tokens buy price to get value staked. I then multiplied the amount of VFT I earned per day on that token by the buy price for VFT. The APR is then calculated as ($ Earned per day)/($ value staked) x 365 days x 100%.
I was struggling calculating the APY (later I learned I needed to use fractional ARP) so I cheated and used an online APY calculator.
Results
The results I got were very interesting. There is certainly a wide range in APRs depending on what you are staking.
Note I didn't calculate returns for #LEO or #HIVE as I'm not currently staking any of that in the lab. If you are, and you have calculated the APR and APY, please drop a comment with your results.
My Thoughts
There is not a stinker in the bunch, but holy cow, look at the VFT APY!
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10,000%!
Now, before you go get a second mortgage to load up on #VFT, realize that #VFT is pretty lightly traded right now and there isn't much on the market to buy or sell, especially after I tried to buy it all yesterday!
As the site gets better known and there is more #VFT farmed I expect there will be more of a market for #VFT.
I also expect the APY's to drop over time. I'm not sure how they determine what APR to pay but 10,000% seems unsustainable.
Also keep in mind that the main use for #VFT is for the creation of music NFTs (what they call VFTs). As more musicians learn about this great way to profit from their music the demand for #VFT could go way up.
What Do You Think About VFTLab?
Let me know what you think about #vftlab by leaving me a comment. Are you using it? What are you staking, and what are you doing with your earned VFT?
This Is Not Financial Advice
This post just contains my opinions. All investments have risk. Do you our research. Yada yada.
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Great stats! I actually invested a bit here because of one of your previous posts. Just a little bit of starbits. But I'm stacking to get 1 coin which I will reinvest - perhaps I should pump some more starbits to move faster!
Yeah, I was putting my starbits there while I try to get my million starbits. Turns out it has one of the lower APRs, but it is still pretty darn good. I will have to do some calcs to see how much I earn on my starbits to confirm it will be worth the 30,000 starbits or so I will lose to the deposit fee. I'm pretty sure it will be.
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!LUV #VFTLAB
Okay, so what do I do with the tokens once I have them. That is what I have been trying to figure out. I have to dig into this again because I kind of just threw some stuff out there and then I forgot about it.
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I am re-investing them in the VFT farm. At some point I will start selling them on the market, but for now I'm just compounding. If you are a musician you can use the VFT tokens to create VFT NFTs. I think it is 100 VFT tokens per VFT creation. But I'm not a musician (does singing in the shower count?) so I'm not going to be going down that road.
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Gotcha, thanks for the info. I just reinvested my VFT tokens into the farm.
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Good move!
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These are insane APR and APY returns.. thanks for sharing the details. cheers
You are welcome!
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Just to be clear Rising Star and MusicForLife are completely separate but we support each other's projects as there is so much synergy.
Cheers!
Jux.
Ok, thanks for clarifying. You are so supportive it is hard to tell you apart!
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Editted! Thanks!
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I've been staking Starbits and use this tool to work out the APY. At the moment I'm getting 84.153% APY. However, before I added in a second larger batch I was making 410.807% so I'm wondering whether I'm maybe not doing the calulations correctly.
So far I have added all my earnings into the den.
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Is it any different from the APRs mentioned in the tool below? I think it gives the current APR but there may be some problems as in it may not be fully accurate.
https://vftlabdashboard.netlify.app/
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Thanks, I didn't know about that tool. But I am getting pretty different values than what they show. Not sure why.
Yea I don't know either but I have been using that to figure out the APR. I think its not 100% accurate and I don't know if they are using bid, ask or mid prices.
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Yeah, it could be what they are using for value. I used the bids.
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