Comparison of the Annual Percentage Yield (APY) of Some Delegation Platforms in the Steem Ecosystem

in NutBox2 months ago

We all know that Steem is a DPoS platform, and its PoB (Proof of Brain) mechanism allows SP (STEEM POWER) holders to be rewarded by contributing to Steem.

SP & SP Delegation

STEEM is the local token of Steem Blockchain. SP (STEEM POWER, SP for short) is the STEEM in staking, which can be simply understood as 'locked' STEEM. STEEM can be instantly converted to SP at 1:1, whereas 1:1 conversion of SP to STEEM requires a 28-day redemption period.

Once the user converts STEEM to SP, they acquire some rights: 1) The right to upvote for posts, so that the author can receive rewards, and the right to receive rewards as a curator; 2) The right to vote for Steem witnesses; 3) Automatically receive about 3.55% of dividends per year; 4) The right to vote on Steem Proposals;

Delegation Platforms

There are a large number of SP delegation platforms on Steem Blockchain, which provide users with the service of handling SP. Among the larger SP delegation platforms are @upvu, @nutbox, @tipu, and @justyy etc.

If the user delegates his SP to the SP delegation platform, he does not need to perform complicated operations on a daily basis to receive the benefits of holding SP. It should be noted that SP delegation only temporarily delegates the right to use of SP to other accounts, and the ownership is always in the hands of the holder, and no one except the owner can use the SP. SP holders can cancel the SP delegation at any time. Once the delegation is cancelled, it only takes 5 days to return the right to use of SP back to the user.

Users who delegate SP to platforms such as @upvu, @nutbox, @tipu, and @justyy will generally receive two types of rewards: 1) Daily rewards such as STEEM/PNUT; 2) If they post on Steem, they will be upvoted by these platform accounts.

Comparison of APY from SP Delegation

What is the APY when users delegate SP to these platforms? Let's take @upvu, @nutbox, and @tipu as examples for discussion and calculations.

Since @upvu has calculated its APY, we will use the delegation to @upvu and @nutbox from the same user for calculation. We selected @kakakk as an example, and its delegations to @upvu and @nutbox are as follows:

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STEEM Received or PNUT Reward

@kakakk delegated 187540.03 SP to @upvu and received 40.882 STEEM on July 31, 2021.

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@kakakk delegated 14360.43 SP to @nutbox and received 495.37 PNUT on July 31, 2021. The calculation is as follows:

(14360.43/8,348,867.061) × 288,000 PNUT = 495.37 PNUT

  • Total SP delegation to Nutbox Peanut Network: 8,348,867.061 SP
  • Nutbox Peanut Network distributes to SP delegators: 288000PNUT/Day
  • The price of PNUT today is $0.0206, so @kakakk as a delegator will receive 21.55STEEM on July 31st.

Upvote Reward Received

@kakakk posts on Steem every day. We took the post 《[투자] 210731 _ LPT 현재까진 굿!! 그레이스케일 믿고 장투!!》 posted on July 31, 2021 as example, and his upvote rewards were:

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@upvu contributed $60.45 to upvote the post, and @nutbox contributed $1.93 to upvote the posts, 50% of which belonged to the author, that is, $30.225 and $0.965 respectively. Today's price of STEEM is $0.4735, so converted to STEEM the rewards are 63.83 STEEM and 2.04 STEEM respectively.

Comparison of APY from SP Delegation

Based on the above data, we have obtained the following table of APY comparison:

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We can see that the APY for delegation to @upvu, @nutbox, and @tipu are 20.38%, 59.96%, and 37.22% respectively.

The above data is based on our estimation, and does not take into account the changes in the exchange rate of SBD|SP and other hidden benefits that the author will receive 7 days later.


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