Recently, the incentive structure of USDD has been adjusted from a single USDD reward to a dual-coin model of USDD and TRX. How can this combination be utilized to be cost-effective?
According to the announcement, the base APY remains unchanged at 10%, but there has been a change in internal allocation: 7% is produced in the form of USDD, while the remaining 3% is converted to TRX rewards. The highlight here is that the USDD portion supports an automatic compound interest mechanism, allowing for the rolling growth of interest.
The key question is how to handle that 3% TRX to maximize returns. Some have calculated that if a compounding reinvestment strategy is adopted, the theoretical yield could possibly exceed the 20% mark, even approaching an APY of 21.2%. This figure does sound quite appealing, but the core lies in the reallocation plan for the TRX portion.
In other words, the 7% automatic compound interest of USDD forms the foundational growth engine, while the 3% TRX rewards serve as the entry point for secondary mining. The key is to choose the right timing and method to involve this portion of TRX in the profit cycle. This not only involves timing but also balancing market liquidity and cost of fees.
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SerumSqueezer
· 6h ago
Wait, 7% automatic compound interest and 3% manual? Doesn't that still mean I have to keep an eye on it myself...
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NftMetaversePainter
· 6h ago
actually, the algorithmic elegance here reminds me of generative yield farming... that 21.2% theoretical APY is just the hash value of compound interest meeting blockchain primitives, but nobody talks about the computational cost-benefit topology
Recently, the incentive structure of USDD has been adjusted from a single USDD reward to a dual-coin model of USDD and TRX. How can this combination be utilized to be cost-effective?
According to the announcement, the base APY remains unchanged at 10%, but there has been a change in internal allocation: 7% is produced in the form of USDD, while the remaining 3% is converted to TRX rewards. The highlight here is that the USDD portion supports an automatic compound interest mechanism, allowing for the rolling growth of interest.
The key question is how to handle that 3% TRX to maximize returns. Some have calculated that if a compounding reinvestment strategy is adopted, the theoretical yield could possibly exceed the 20% mark, even approaching an APY of 21.2%. This figure does sound quite appealing, but the core lies in the reallocation plan for the TRX portion.
In other words, the 7% automatic compound interest of USDD forms the foundational growth engine, while the 3% TRX rewards serve as the entry point for secondary mining. The key is to choose the right timing and method to involve this portion of TRX in the profit cycle. This not only involves timing but also balancing market liquidity and cost of fees.