You see “25.9% APR” next to a 30-day term and you’re already doing the math. Watch out for that combination: the percentage is annual.
Binance announced that APR today, November 5, for its 30-day locked product $SXT . As a simple example, 1,000 SXT at 25.9% annually for 30 days would yield around 21.29 SXT, assuming the rate stays constant and you don’t reinvest. Not 259.
And earning more tokens doesn’t guarantee you’ll end up with more dollars: if SXT drops in price, it could wipe out those returns. Also, the announcement says that early redemption deducts the rewards you’ve received.
I find it helpful to convert the percentage into tokens and days before deciding whether the term is worthwhile. The big number in the announcement tells only part of the story.
What matters more to you in a product like this: the returns or being able to withdraw when you need to?
Binance announced that APR today, November 5, for its 30-day locked product $SXT . As a simple example, 1,000 SXT at 25.9% annually for 30 days would yield around 21.29 SXT, assuming the rate stays constant and you don’t reinvest. Not 259.
And earning more tokens doesn’t guarantee you’ll end up with more dollars: if SXT drops in price, it could wipe out those returns. Also, the announcement says that early redemption deducts the rewards you’ve received.
I find it helpful to convert the percentage into tokens and days before deciding whether the term is worthwhile. The big number in the announcement tells only part of the story.
What matters more to you in a product like this: the returns or being able to withdraw when you need to?