$APE staking – Sustainable?
An analysis on sustainability of $APE staking program launched today
Hello anon,
Today, rewards for people staking tokens in the $APE / BAYC ecosystem will start to accrue
Below some details on structure and likely impact on price to help you navigate the event
HOW STAKING PROGRAM WAS STRUCTURED
On December 5th, staking for $APE was announced
c.45m $APE tokens have been staked in the pool so far (c.$160m)
There are four pools
POOL 1: Single side staking for $APE (pool rewards could be 30m tokens maximum for year 1)
15m $APE staked so far
POOL 2: $APE + BAYC contribution (pool rewards could be 47m tokens maximum for year 1)
21m $APE staked so far
You can stake 10k $APE for each BAYC
POOL 3: $APE + MAYC contribution (pool rewards could be 19m tokens maximum for year 1)
7m $APE staked so far
You can stake 2k $APE for each BAYC
POOL 4: $APE & BAKC + BAYC or MAYC (pool rewards could be 4m tokens maximum for year 1)
1.5 $APE staked so far
You can stake 0.8k $APE for each BAKC
HOW STAKING PROGRAM CAN HELP BAYC / $APE ECOSYSTEM
Initial APYs were the following, but are going down as more assets are added into the pools
$APE only: 1,209% APY
BAYC pool: 1,126% APY
MAYC pool: 1,297% APY
BAKC pool: 1,278% APY
Current APY is the following (source: https://dune.com/ponzidope/apecoin-staking-apy)
$APE only: 297% APY
BAYC pool: 344% APY
MAYC pool: 388% APY
BAKC pool: 347% APY
Long term, it will be reduced to “normal” levels as more people have incentive to stake given otherwise they will get diluted
Staking helps support demand on $APE and NFTs (attracts potential buyers willing to earn yields on the token)
This also helps reducing selling pressure on $APE (investors have incentive to hold the token)
Trading volume of BAYC increased 2x vs. last 7-day average; floor price mostly stable
Trading volume of MAYC also increased 1.5x vs. last 7-day average; slight increase in floor price
Trading volume of BAKC increased about 3x vs. last 7-day average; good pump in floor price
We can see the impact of the staking program in the chart below: the $APE balance in NFT holders wallets and exchanges has been dropping dramatically
$APE on exchanges is very close to all-time-low
NFT holders have staked ~30% of their holdings so far
EXTRA:
The effect of the unlocked staking pool for $APE are outlined above and below: but if interested to an excel database with past and future unlock dates of other 150 coins, feel free to reply to this email
DRAWBACKS OF STAKING PROGRAM: IS IT SUSTAINABLE?
….