Is 50% APR really bad...? — @CryptoSorted on read.cash

@CryptoSorted 18 November 2021 more from that month

Is 50% APR really bad...? I know that #crypto gains and returns has really spoilt us into thinking that anything below 100% APR is too poor. But is it? Sometimes, it's ok to keep greed aside and see things for what they are. How long is a 100+% APR sustainable for most projects? What is the minimum APR, below which you will take your money elsewhere. #cryptocurrency #defi

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2 comments

@Costanza 18 November 2021

It all depends on where the APR comes from, for 90%+ of the crypto projects it just comes from inflation which will come at the cost of the price of the token. I'm willing to settle for a lot less if the APR comes from actual earnings and if there is still a lot of growth in the number of users.
@OldBastard 19 November 2021

I think the opposite. For me, anything above a 20% APR is kinda suspect for HODLing long term. I'm very happy with anything above a 5% APR, if the underlying principal is secure.