[KOF Arena] "100% APR" 90-day MBXL staking investment simulation

APR for MBXL staking, "Projected to remain 100% for a long time"


MBXL staking accumulates rewards based on an annual percentage rate (APR). Rewards are paid out of MARBLEX's community fund, so they aren’t affected much by external factors. Rewards are also shared based on the investor's share of the total amount deposited, but there is an APR cap of 100%, so even if the total amount suddenly increases significantly, it will have a small impact on the APR.


The APR has remained at 100%, the same as the APR Cap, for four weeks since January 27. While the amount of MBXL deposited is gradually increasing, it is slow, and it is estimated that the total amount would have to be more than double the current amount for the APR to drop below 100%. Therefore, it is expected for the APR to remain at 100% for a long time to come, and you can get an idea of how much you can expect to earn by investing in MBXL staking now.


▲ 100% APR has been maintained for the past 4 weeks and is expected to continue for the foreseeable future


90-day investment at 100% ARP? "24.2% increase in MBXL volume"


- Initial Funds: 101.2 MBXL (100 MBXL deposited + 1.2 MBXL in fees)

- Applicable APR: 100

- Deposit period: 90 days (0% withdrawal fee)


- Withdrawal amount after 90 days: 100 MBXL

- Estimated cumulative reward in 90 days: 24.66 MBXL

- Additional reward for long-term deposits: 1 MBXL

- Estimated total after 90 days: 125.66 MBXL

- Change in MBXL quantity: +24.46 MBXL (24.2%)


Suppose you deposit 100 MBXL for 90 days with an APR of 100%. The APR is the simple interest rate for a 365-day deposit. If the APR is 100%, this means that after 365 days, you will be rewarded 100% of your principal. The expected reward for a 90-day deposit would be 24.66%, calculated as 100% ÷ 365 days × 90 days.


MBXL Staking offers additional rewards for long-term deposits of 90 days or more. The additional reward depends on the length of the deposit, with withdrawals made after 90 days or more but less than 180 days earning an additional 1% reward. If you make a withdrawal after 42 days or more, you will regain your 100 MBXL deposit fully, as there are no withdrawal fees.


After accounting for the deposit principal, deposit fee, principal received upon withdrawal, accumulated rewards, and additional rewards, you would have spent 101.2 MBXL and received 125.66 MBXL after 90 days. That's a 24.2% increase in MBXL compared to before you deposited.


▲ You will receive 24.46 MBXL (24.2%) after 90 days of investment

What if the MBX price goes up? "Profits amplified as market value increased"


What matters is the value of MBXL when you cash out. Since MBXL is a token that is exchanged 1:1 for MBX, the value of MBXL will change as the price of MBX changes. If the price of MBX is the same after 90 days as it was before you deposited, the 24.2% increase in MBXL is your profit.


If the price of MBX is higher than it was before you deposited, the value of the principal you deposited will increase, and the value of the MBXL you receive as a reward will also increase. For example, if the price of MBX increases by 10%, not only will the value of your principal increase by 10%, but the value of your 24.2% MBXL will also increase by 10%, amplifying the effect of the price increase.


▲ When the price of MBX goes up, your rewards also benefit from it, making your return even higher.

What if the MBX price drops? "No loss until it drops -19.4%"


A certain amount of price drop can be compensated by the increased quantity of MBXL. For example, if the MBX price drops by 10%, the value of your principal will decrease by 10%, but this will be offset by some of the 24.2% increase in MBXL, and you could benefit from the remaining MBXL. A -19.4% drop would be offset by the rewards, and a larger drop would result in a loss.


If you've been holding MBX for 90 days, you'll be hit by the full impact of the price drop, but if you're staking MBXL, you'll be able to use your rewards to cover your losses or even profit from the downturn.


▲ If the MBX price drops, you can cover your losses with rewards and avoid losing as much as -19.4%.

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