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Copying and pasting a note I wrote when I cam across this on Twitter [1] For the sweepstakes aspect, not considering the splits for larger prize money, the e
by abalaji 6y ago
Copying and pasting a note I wrote when I cam across this on Twitter [1]
For the sweepstakes aspect, not considering the splits for larger prize money, the expected value is ~ $0.02 for every $25 you put in.
The APY here seems to be 0.2% which seems to be lower than Ally which offers 1.1%.
Though, the aim seems to be to “gamify” baking.
[1] https://twitter.com/adithya_balaji/status/1275935655718195213?s=20 https://twitter.com/adithya_balaji/status/127593565571819521...
- adammoelis 6y agoThis excludes any value from prizes, which is the bulk of the value of Yotta. 0.2% is what you get if you never win a prize, ever.
- abalaji 6y agoI might get around to doing the math myself, but what would be the APY given the expected earnings I calculated above with an average American savings account of say $7,000.
- adammoelis 6y agoThe EV on an annualized basis is around 3% right now because we are subsidizing some of the prizes currently. In the long run we will aim to match Marcus and Ally, which right now are at around ~1% but go up or down depending on market cycles.
- gsurfs99 6y agoHow long do you think you could sustain the ~ 3% rate before going down to 1%? Please be honest : )
- schoen 6y agoI think I would enjoy a project to gamify baking! :-)