Putting it all Together

To simplify for these examples, we will use the dollar amount equivalent of $STAKE. Deposits and claims however will in fact be done in $STAKE.

Assume you deposit $1,000 in the Stake Faucet.

After the first day you will receive 1% on your NFV, which will be $10 ($1,000 * 1%).

This alone would recoup your initial investment in just over 3 months without ever compounding, leaving almost 9 months worth of pure profits.

Additionally you receive 2% on your GFV, which provides you with a additional $20 to claim ($1,000 * 2%).

This makes a grand total on the day of $30. This means you would recoup your full investment in just over 30 days without compounding.

However, let’s now look at how compounding once daily alters this.

After day one, you decide to compound both your Faucet and Rebase rewards.

Now your NFV is $1,010 ($1,000 + $10),

while your GFV is $1,030 ($1,010 + $20).

On day 2 you will earn $10.10 from the faucet ($1,010 * 1%),

and $20.60 from Rebase($1,030 * 2%), for a total of $30.70.

Your NFV is now $1,020.10 ($1,010 + $10.10),

and GFV is now $1,060.70 ($1,030 + $30.70).

This is compared to say $1,020.1 if you invested $1,000 in faucet projects, or $1,040.4 if you invested the same in rebase protocols.

You can claim these rewards or continue to compound and grow.