Mainnet — Part 2. Estimation of KAI Staking APR
By Kardiachain CFO , Mr Anthony Vo
Read more: https://bit.ly/3eF9Zqj
Over the past two years, our incredible developers have been building the Kardiachain mainnet platform and in Q4 we will finally see it go live. Based on the framework that we have developed in the first report — “Mainnet — The value of staking”, Today, we would like to offer the second report on this subject — “Estimation of KAI Staking APR” by KardiaChain CFO Anthony Vo, to give you a better understanding of how the team evaluates staking models and attempt to gauge the potential APR % rates that our model may offer.
In Part 1 of the Paper Series, we have developed a Staking Contract Valuation Framework to help investors analyze and determine a fair APR required rate for staking any generic token. In this Part 2, we examine KAI historical data with the goal to utilize the Framework and derive a fair APR rate for investors to stake their KAIs. Along the way, we have discovered a couple of important findings, notably the trend and magnitude of correlation coefficients between KAI-USDT and BTC-USDT, which makes KAI a prominent investment among other small-medium alternative coins.
Most importantly, we have arrived at the conclusion that the fair APR rate to stake KAI will be in the range between 12% to 24% and centerings around the 15% mark. The reason that we have a range is partially due to the expected margin of error in our estimation of KAI volatility, but more importantly, something I have yet discussed, the supply and demand of KAI in circulation, which is another factor to drive KAI volatility as KardiaChain is approaching its Mainnet schedule.
To give you a better understanding of how the team evaluates staking models and attempt to gauge the potential APR % rates that our model may offer, our CFO Mr Anthony Vo has written a 3 part series on the quantitative theory of staking, we hope that you enjoy part 2 and stay tuned for future updates.
Website | Official Telegram community | Official Vietnamese community |
Official Announcement | Reddit | Medium | Twitter | Linkedin | Kakaotalk
