[KOF Arena] 30-day 101% return "MBXL Staking Investment Return Report"

30-day return "Principal doubled"


- Investment product that rewards you for depositing MBXL

- APR Cap 500% event for 30 days from December 28, 2022

- 101% ROI on investments during the event period

- Can be used to generate additional income in a bull market or as a risk hedge in a bear market


MBXL Staking is an investment product that allows you to deposit MBXL, the bridge token of the Marblex ecosystem, and earn interest-like rewards. Unlike regular staking, where you can't withdraw for a certain period of time, MBXL staking is free to deposit and withdraw. Instead, there are deposit/withdrawal fees, and the smaller the deposit amount or the shorter the deposit period, the more expensive the fees.


The Annual Percentage Rate Cap (APR Cap) is a device to prevent a few well-capitalized individuals from monopolizing rewards and to increase rewards for smaller investors. The APR Cap is designed to be 100%, but there was an event that increased it to 500% for 30 days starting on December 28, 2022, the day of launch.


During the 30 days when the APR Cap was set to 500%, we actually invested in MBXL staking and earned a return of over 100% in US dollars, meaning our principal doubled in just one month.


▲ MBXL staking is structured so that the smaller the deposit and the shorter the deposit period, the more expensive the fees.

30-day investment results 1. "ROI 101%"


- Investment period: December 28, 2022 - January 27, 2023 (30 days)


- Principal Deposit: 1,008 MBXL (including 0.8% deposit fee) = $1,037.63

- Reward: 303.6869 MBXL = $537.13

- Principal Withdrawal: 990 MBXL (excluding 0.1% withdrawal fee) = $1,751.01


- Final amount: 1,293.6869 MBXL = $2,288.14

- Profit: $1,150.52 (ROI 101.13%)


On December 28 last year, the APR cap was increased to 500% for 30 days. While the APR was 500% on the first day of deposit, it gradually decreased over time, and the rewards decreased with it. The cumulative rewards for the month totaled 303.6869 MBXL. In terms of rewards alone, this is equivalent to a 30% return.


The good news is that the price of MBX increased by 56.7% from $1.1286 at the time of deposit to $1.7687. As a result, not only the principal amount deposited, but also the value of the accumulated rewards increased. The cash value of the 1,008 MBXL at the time of deposit was $1.137.63, but the cash value of the 1,294 recovered at the time of withdrawal was $2288.14. This resulted in a profit of $1,150.52 and a return on invested capital (ROI) of 101.13%.


▲ Table showing daily asset value changes during the investment period

30-day investment results 2. "MBXL up 30% with rewards"


MBXL stakers receive rewards every 5 days from the time of the initial deposit. Since it was deposited for 30 days, there were 6 rewards received. Over time, the APR decreased, and so did the rewards. The accumulated rewards totaled 303.6869 MBXL (369.5% APR), which was 30% of the principal.


▲ Over time, the APR and rewards kept decreasing
▲ Nevertheless, the rewards earned over one month was still 30% of the principal.

30-day investment results 3. "Impact of the 56.7% increase in MBX price"


MBXL staking uses MBXL tokens for deposits, fees, and rewards. MBXL is a bridge token that exchanges 1:1 with MBX. The MBX price is the MBXL price, and as the MBX price changed, so did the value of the principal and rewards. The MBX price was $1.1286 at the time of deposit and dropped to $1, but rose to $1.8 on a number of positive events. At the time of withdrawal, it was $1.7687, a 56.7% increase from the time of deposit. The increase in the MBX price resulted in a 101% ROI.


Principal at time of deposit: 1.008 MBXL = $1,137.63

Principal withdrawn after 30 days: 990 MBXL = $1,751.51

Reward: 303.6869 MBXL = $537.13


Principal withdrawn after 30 days + Reward = $2,288.14

$2,288 - Principal at the time of deposit = $1,150.52 (Profit)


▲ Graph of MBX price movement during the investment period (Source: TradingView)
▲ Increase in MBX price (+56.7%) increased the asset from $1,137 to $2,288

MBXL Staking "A Long-Term Investment for Bulls and Bears"


While other common staking products' rewards are derived from fee income and cannot be withdrawn for a period of time, MBXL staking is paid out of Marblex's community fund, so the APR is stable, you can withdraw or make additional deposits at any time, and additional rewards are paid for deposits of 90 days or more.


In a bull market, when MBX's price is rising, the rewards you earn from staking grow at the same time as your principal. On the other hand, in a downward market, you can also expect rewards to act as a risk hedge to offset the loss of your principal. In the event of a sharp drop, you can also react by immediately withdrawing and cashing out your deposited MBXL.


However, you'll only receive your rewards every five days, and you'll be charged a withdrawal fee for shorter deposits, so this is more of a long-term investment than a short-term one. The higher the deposit amount, the lower the deposit fee, making it more favorable for larger investments. If you're looking for something to invest in for the long term in anticipation of a booming coin market, but also want to hedge your bets in case of a market downturn, MBXL staking could be a good option.


Sort by:

Comments :0

Insert Image

Add Quotation

Add Translate Suggestion

Language select