Does anyone know what the correct mathematical formula for finding the optimal compounding frequency for crypto staking is? Say I have 2000 of a token and it costs 0.7 tokens to compound it. The current APR is approximately 85%. How would I write this equation out?
Something like: (2000 x .85) / 365 = 4.657 daily on principal
(4.657 x .85) / 365 = 0.0108 - 0.7 = -0.6892 on daily interest if compounded
32.599 - 0.7 = 31.899 7-day compound
So (32.599 x .85) / 365 = 0.0759
But how would I go about calculating when the value over time from the accrued interest earning interest value outweighs the cost of the compounding?
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