Provide - rates seems to be off?

Made a reddit post about this issue: https://www.reddit.com/r/IncognitoChain/comments/kkim48/provide_seems_to_be_totally_off_whats_going_on/?utm_medium=android_app&utm_source=share

Made a test for provide, I’d love someone to explain this issue and shed light on the answers (how often does interest compound? When is the exchange rate calculated? There seems to be some lack of transparency which would be good to fix, hard to find some basic info.

Love the concept and project SO MUCH! I really hope it’s legit and works out, we all need this so much!

Thank you!

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If you tap (i) near Compounding Rewards text on Provide page, there is some explanation. I hope it helps.

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Welcome to the community Thomas_Edible…and thank you abduraman for being there as always with support for the community… :sunglasses:

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Hi @Thomas_Edible, my thought is that there is confusion between APR and APY. APY (annual percentage yield) takes into account compound interest, but APR (annual percentage rate) does not. Provide’s interest in measured in terms of APY.

For example if someone invested $100 at 28% APY, then at the end of the year they would have $128. However, if someone at invested $100 at 28% APR they could have more than $128 at the end of the year, depending on the frequency of compounding (because you earn interest on your interest).

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@Thomas_Edible, @17Strife is correct. The APR would be roughly 24.69% compounded hourly. Interest in paid in PRV regardless of what currency you provide. The APY will just change obviously.

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I think you confused the two in your example but yah, I took that into account and my calculation for provide used an APY (compounding monthly interest). I couldn’t find any information on the compounding rate (does it compound monthly/weekly/daily/etc?) So I assumed monthly… But in any case I feel I’m missing some crucial information and the gap between my calculations and the yeilds are yet to be explained…

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Compounding hourly? Where did you find this info?

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@Thomas_Edible That info is stated if you hit the info button under the provide tab in the app.Screenshot_20210106-074730_Incognito Wallet

Not the info I’m looking for (:slight_smile:

I’m the author, I didn’t withdraw any post🤷

I think this is what you are looking for

That message indicates that I withdrew my post. It is system generated.

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Update-
So after some searches and trials I found the interest compounds hourly, plugged that into the calculation and came out closer to expected (88% of the expected returns), Im still not sure why I’m not getting the correct return but I guess it’s close enough (considering some variables which are difficult to calculate in retrospect). I’d be interested to understand the security measures and risks involved in using provide, still unknown. Could I wake up one day and see my funds have vanished?

Hi @Thomas_Edible, this will be an interesting topic.

Could you please show us how your calculation is? Is it for PRV only or for another token?

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