I know a lot of people still remember COMPOUND, the liquidity platform that took a trip to the moon before YAM got squashed. Not only is Compound still around, it is still performing well despite the recent SUSHI fight.
I was one of the people who, when BAT was earning upwards of 40% APR on Compound, shoved nearly all of my holdings into the protocol. As with most things, and even more so with crypto, it was bound to come back down to a reasonable return rate. The decline of APR in compound was not only associated with BAT but with all other assets on the protocol.
Public Protocol Change
The founder of Compound always had the intention to introduce a token that would have a single purpose. That purpose was to be able to hand over the protocol to the community by the distribution of the $COMP token which would then allow holders of the token to vote on proposed alterations. The initial release of $COMP was followed by a massive spike in price, unintentionally, as the purpose was for the token to be fairly distributed to the users of the Compound protocol and was not intended to have such a high price.
Needless to say, the community voted on the distribution rate, distribution method, and the interest rate model for BAT and other coins. New proposals continue to be discussed and voted on; However, I just wanted to mention this due to the current APR of BAT.
BAT % APR Fluctuations
So to get to the point here, I still have not touched the BAT that I have in compound since I was earning nearly 40%, not long after the protocol changes the APR quickly declined to around 2-6% for a week or so as (I assume) many withdrew their BAT and switched over to DAI as that was the next highest yield. Seeing as I don't intend to touch my BAT until it reaches $1 each (optimistic, maybe, but why not) I just left it alone seeing as any kind of return on something is better than nothing.
Well last week sometime I noticed that my APR had increased to roughly 8% again, so I went and looked through the protocol changes and couldn't find anything so I just smiled and let it be. Then, again the APR decreased down to 1-2% while BAT retraced from its little rally in august so I can only assume BAT was being borrowed as the price was rising. But then I wake up this morning to see the lending APR is back up to 13% at time of writing (13.89% when I woke)
I was just caught by surprise by this nice increase in APR and thought I would share for anyone who might want to try to take advantage (if gas fees don't matter to you then 13% might be intriguing, not to mention a little $COMP on the side)
While Oregon is burning and I am right in the middle of the smoke I have been a little bored so I really wanted to thank you for reading my ramblings. Don't forget to like, tip yourself, and follow if you liked this. (I promise I write better articles)
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