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Yield Calculator: DAI

Protocol on Ethereum
Conservative
3.34%
Active APR

ROI Forecast

3.34% ACTIVE RATE
Low Tier
21.6 Years
Time to Double Investment
Rule of 72 Calculation

Earnings Breakdown

Projections based on a $10,000 deposit
Daily Earnings+$0.92
Monthly Income+$27.83
Annual Return+$334.00
Real Yield (Inflation Adj.) 0.34%

Compound Interest Matrix

Investment Daily Profit Monthly Profit Yearly Forecast
$1,000 $0.09 $2.78 $33.40
$5,000 $0.46 $13.92 $167.00
$25,000 $2.29 $69.58 $835.00
$50,000 $4.58 $139.17 $1,670.00

* Projections assume APY remains constant and do not account for gas fees.

Strategic Analysis

Investing in DAI via Spark currently provides a return that prioritises capital preservation over aggressive growth.

Asset Class & Exposure

For risk-averse investors, DAI offers a shelter from market volatility. The returns here are generated via lending demand or swap fees, rather than token appreciation.

Compounding Strategy

To maximise your crypto-asset earnings on Spark, frequency matters. With current daily earnings of ~$0.92 (per $10k), manual reinvestment should be weighed against gas costs.

Network Context: Ethereum

As this strategy resides on Ethereum, transaction fees must be factored into your net ROI. Investors typically opt for a 'harvest and compound' cycle of 14 to 30 days to maintain a healthy efficiency ratio.

DeFi Yield Guide

Understanding how yield is generated is critical for any DeFi investor. The returns displayed in this DAI APY Calculator differ from traditional finance in several ways.

Understanding Your Returns

The DAI APY Calculator above projects future value based on current network snapshots. In DeFi, returns are dynamic.

The magic of APY (Annual Percentage Yield) vs APR (Annual Percentage Rate) lies in compounding. By reinvesting your daily earnings of ~$0.92, you exponentially grow the principal balance.

Is this yield sustainable?

Yields on Ethereum fluctuate based on 'Utilisation Rates'. When demand for borrowing or trading DAI is high, yields spike. When activity cools, yields compress. This tool assumes a constant rate, but active monitoring is recommended.

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