It's been 10 days and a few hours since I've purchased a new upstart to the crypto world - SafeMoon (Their official site is here). This update is a quick calculation on the current APY gains for the reflection mechanism built into the protocol. For those who are unaware, this mechanism is a fee, part of each SafeMoon transaction, that directly redistributes a portion of the transaction fee to all existing holders of the coin. As I mentioned in my previous post detailing how I purchased SafeMoon on pancake swap, my purchasing experience has been my first foray into DeFi, even though it was limited to the Decentralized Exchange transaction on PancakeSwap. I've since been reading up on all the additional things you can do with DeFi, such as adding to a liquidity pool, and since they always show the APY yield, I figured it would be fun to calculate (read: estimate) what my SafeMoon APY has been for the past 10 days! This APY is exclusively dependent on volume (actual coins, not fiat volume) of SafeMoon being transacted, since I am paid whenever someone else transacts in SafeMoon.
For anyone who would like to follow along, there's a simple formula to use, and you can plug the data into this calculator -> https://www.omnicalculator.com/finance/apy. All calculations will be done with an assumed daily APY, but SafeMoon is actually a continuous / real-time interest bearing protocol. Don't believe me? Find the coin on bscscan and watch the coin amounts tick up on the top wallets every few seconds!
1. Find your wallet on https://bscscan.com/
2. Sum up the total value of all your SafeMoon transactions. Type this value in as your initial balance.
3. Grab the total number of tokens currently in your SafeMoon wallet, and enter this into the final balance.
4. You have to change the number of days this has been compounding. For me, this was easy - I've purchased once (so far), and it was 10 days ago. To get an estimate, you could average the days since each of your transactions, although a weighted average is probably most accurate. If you have multiple transactions, try this calculator, where the weight is the number of coins you bought and the value is the decimal representation of days since the purchase - example, 10 days, 8 hours would be ~ 10.33 days.
When I plugged in all these numbers, I was shocked to see my current APY at almost 26%! Which means, if SafeMoon volume stayed exactly where it is right now, I would double my coin count in less than 4 years! This coin so far has an amazing rate of return, and I do feel as if it can offer some protection from whales selling down the road! Remember, this type of APY has nothing to do with the volume in any currency other than SafeMoon. If the coin had an increase in price, but the number of tokens being transacted decreased, this APY would also decrease.
This calculation is just an estimate though, and was largely for fun, since the calculator only allows daily compounding interest at most.
Remember, this post is not financial advice in any way, and you should do your own research. Instead, this post is a quick strategy to calculate your rate of return if you happen to be a SafeMoon HODL'er. If you're interested in learning about SafeMoon more, I encourage you to go to their official website. Are you a SafeMoon HODL'er? Was I able to help you calculate your current APY while holding? If so, leave a tip or drop a like! Thanks for reading! 🚀🌕
