Di Math: Compound Frequency vs Total Return
How often you go Re-Loop? Daily, weekly, or monthly? Dis post go break am down with numbers.
Di Math: Compound Frequency vs Total Return
One of di common questions wey new Turbo Loop users dey ask be: "How often I go Re-Loop? Daily? Weekly? Monthly?" Di answer dey depend on wetin you wan achieve — but di math clear, and e dey important to understand.
Di general rule
More frequent compounding = higher effective ROI, up to a limit. Di gap between daily and continuous compounding small. Di gap between daily and monthly dey meaningful. Di gap between monthly and "never compound" dey massive. (Why APR and ROI no be di same number na di prerequisite read for here.)
A concrete example
Make we assume 1% daily yield on $1,000, over 90 days:
- Never compound (pure simple interest): $1,000 + ($1 × 90) = $1,090. You earn $90.
- Compound monthly (every 30 days): Roughly $1,334. You earn $334.
- Compound weekly (every 7 days): Roughly $1,390. You earn $390.
- Compound daily: $1,000 × (1.01)^90 = $2,449. You earn $1,449.
From never-compound to daily-compound: 16x more earnings over 90 days, same starting capital, same daily rate. Plug your own deposit into di yield calculator to see your curve.
Why di gap dey wide
Each day's yield go become new principal wey go dey earn di next day's yield. Di longer you dey compound, di larger di base, di faster di growth — di compounding film go show di intuition in 90 seconds.
Gas considerations
For BSC, Re-Loop transactions dey cost $0.10 - $0.50 in BNB. For a $100 position, daily compounding fit cost $30/year for gas — breakeven dey around weekly. For $1,000+ daily dey clearly worth am. (Why we pick BSC over Ethereum na exactly dis fee profile.)
Practical recommendation
- Position under $500: Re-Loop weekly.
- Position $500 - $5,000: Re-Loop daily.
- Position over $5,000: Re-Loop daily, consider batching on gas-quiet times.
Di key insight: no let yield dey idle. Whether you compound daily or weekly no matter pass whether you compound at all. If di mechanics dey feel new, di withdraw-and-compound reel go show a Re-Loop on-screen.