Strategies

How to maximize your earning potential

Compound Daily.

Compounding your available rewards once per day is the best way to increase your earning power on Dappy. Compounding daily will ensure that you continue to earn rewards at the maximum rate.

The 6:1 pattern is a popular strategy that allows investors to gradually take profits while still benefiting from the power of compound interest. In this strategy, you would compound your available rewards six times per week and withdraw your available rewards once.

For example, a looping 6:1 strategy might look like this:

WeekdayAction

Monday

Compound

Tuesday

Compound

Wednesday

Compound

Thursday

Compound

Friday

Compound

Saturday

Compound

Sunday

Withdraw

3:1

The 3:1 pattern is a more aggressive alternative to the 6:1 idea that works well in the short-term but underperforms in the long run. By making more frequent withdrawals, investors are able to break even more quickly.

For example, a looping 3:1 strategy might look like this:

WeekdayAction

Monday

Compound

Tuesday

Compound

Wednesday

Compound

Thursday

Withdraw

Friday

Compound

Saturday

Compound

Sunday

Compound

Monday

Withdraw

Withdrawing your available rewards every day causes undue strain on the pool balance and is not recommended. Withdrawing daily will cause your rewards rate to rapidly drop, resulting in significantly lower rewards and a much longer time to break even.

The hoarding strategy is when you invest once and take no further action for an extended period of time. This approach has been known to work well on other protocols but it will not work here. Hoarding will cause your rewards rate to drop at the same pace as if you were withdrawing daily, resulting again in significantly lower rewards and a much longer time to break even.

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