I wanted to follow up on yesterdays article with a few examples to highlight the difference in Fees. I will compare depositing $200 UST into Anchor protocol for a short term place holder to earn interest with harvesting, converting tokens, and then reinvesting them on Polygon.
Anchor Protocol Example
Earn rate: 19.49%
Deposite 200 UST - Transaction Fee = 1.3 UST
Withdrawal 200 UST -Transaction Fee = 0.25 UST
Total Fees = 1.3 + .25 = 1.55 UST
Earned Interest per Year: 19.49% * 200 = 38.98 UST
Earned Interest per Day: 38.98 / 365 = ~ .11 UST
Days interest to recover Deposit / Withdrawal Fees =
1.55 / .11 = ~ 14.5 days
Polygon Example
Harvest 0.223 Dino from DinoSwap - Transaction Fee = .000341915 Matic ($0.0004)
1nchSwap Dino -> wMatic - Transaction Fee = .004424735 Matic ($0.0052)
Deposit wMatic into Solo.Top- Transaction Fee = .000403581 Matic ($0.0009)
Total Fees: ~ $0.0065
As I stated yesterday: "I love Terra Network and its protocols but now I am very careful on what and when I do something about how long it will take to make financial sense. This would be a very different article if I had spent more time on most other networks. The problem is being spoiled by Polygon Fees."
Please review my past articles on my Blog https://www.publish0x.com/crytpo-adventure-by-ira