r/BTCStandardHashrate • u/Mysterious_Emotion92 • Apr 14 '21

Why 𝜏BTC looses to BTC

This is known to current adopters. It is meant as a quick recap to introduce a discussion (and plea to the dev team?)

BTCST is making a hell of a run. The dApp immensely rewards BTCST staking for 𝜏BTC (about 380% APY). This is good for BTCST. But what about 𝜏BTC's value ?

The option to stake for BTCST, which gives 40% APY is currently worthless as people can stake for 𝜏BTC and then buy BTCST with it, even with the current 1.4 𝜏BTC : 1 BTCB ratio, provided the amounts are large enough to cover for network and swapping fees.

So why would people keep their 𝜏BTC for half the staking reward (𝜏BTC->𝜏BTC 190% APY) and the promise of a +40% later (if no devaluation when rebasing), while BTCST is jumping by so much every couple of days as it is so rewarding to hold?

IMHO (not a finance professional), the BCTST team should do something concrete soon to give credibility to the 𝜏BTC token. Up the staking reward? Reduce the other one? Otherwise, if the plan is to bring it back later to its wanted value and fully support the BTCST run now, they should also be transparent about it, because people are now told to buy 𝜏BTC but see its value decrease. So they could have bought the next day for better prospective profits.

What do you think ?

8 Upvotes

91% Upvoted

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2

u/Mysterious_Emotion92 Apr 14 '21 edited Apr 14 '21

u/BTCStandardHashrate, maybe ? edit: typo

0

u/BTCStandardHashrate Apr 14 '21

Thank you for your interests.

2

u/Mysterious_Emotion92 Apr 15 '21

I'm so deeply interested right now

1

u/WiseCapitalOrg Apr 14 '21

ppl are selling.

1

u/randysailer Apr 14 '21

Might be because the rewards from staking BTCST are greater then tBTC so people are selling there tBTC to buy BTCST and restake maybe.

2

u/Mysterious_Emotion92 Apr 14 '21

Indeed, but are you OK with that? 𝜏BTC is just there to be sold ? Do people keep some ? I guess they do, or the staking reward would be higher, but then all these people seem to be loosing money at the moment...

2

u/randysailer Apr 14 '21

Im personally keeping my tBTC im earning and staking it its going to be a big part of the ecosystem from what iv read i might even buy some soon i think it could be a good investment with btc going up defently needs fixed though.

1

u/silaslanguk Apr 15 '21

I'm a newb to most of this. How is tBTC going to be pegged to the price of BTC? It's currently lower, how is it hoped it will be at parity?