Hi there, I was wondering if it’s more Profitable to keep the rewards compounding or to withdraw them and add them to the principal? If anyone knows how to quantify that please let me know!
Profitability
Hey there @Bold rewards are automatically compounded to reflect the expected APY percentage. I dont believe there is a benefit to withdrawing and adding them to the main provision.
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Thanks. I appreciate your quick response.
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Depends on what you have earning interest.
Yes, you earn compounding interest on your provision as well as your rewards but if you are earning 9% rewards on BTC you will only earn 9% on the rewards as well.
You have several options in that case:
#1 Leave the rewards earning the 9% interest
#2 Withdraw the rewards and stake them as PRV tokens and earn 37% (soon to be 28%) so you keep your original Bitcoin provision, keep earning rewards there but reinvest your rewards into a higher interest earning pool.
#3 Withdraw the rewards and trade the PRV tokens for another crypto and do the same things there.
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Yes this, FYI. The options are correct also. Cheers
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