Compounding Interest

After buying a MicroPets NFT and staking it you will begin to earn rewards. These rewards can be used to buy additional MicroPets NFT’s. This is compounding interest.

Why does this matter?

  • Compounding interest causes your wealth to grow faster.

  • As a wise man once said: “Money makes money. And the money that money makes, makes money.”

We’ve made it fun and simple for you to understand demonstrated in the scenario below.

Strategy

A new user of the ecosystem wants to buy a 3D Pet NFT and implement the compounding interest strategy.

Buy & Stake

The user buys then stakes their newly owned 3D Pet which has a standard APR of 25%

Re-invest Rewards

Using the re-investing method the user accumulates tokens to buy another 3D Pet NFT.

Repeat

The user repeats these steps over time increasing the number of pets owned and rewards received.

End Result

Compounding interest is most effective method for maximum growth.

Faster Growth

Notice in the image the value of your investments (nft + tokens) increase much faster over time if you compound your rewards continuously.

Small Requirement

The user can start with a small initial investment and effectively grow their wealth over time.

Greater Rewards

The more 3D Pet NFTs a user owns the greater the rewards received.

Want to illustrate your own scenario?

We have created an awesome calculator that helps you visualize what compounding interest can do for you!

***Disclaimer: This is an example of how compounding interest can be used in the MicroPets ecosystem. This is not financial advise.***