The Coin Reward paid on Stakes in Dukascoins

INCOME GENERATING EXAMPLES FOR COIN AND FIAT REWARD STAKES

Let`s assume that the client is considering different investment options offered by different banks. As a rule, the annual rate of return for such an asset allocation is around 0.2-2 %. Reward programs offered by Dukascopy Bank through Dukascoin as the intermediary vehicle may appear to be a way more attractive option. Use cases described below will help to compare income-generating programs available for Dukascopy Bank clients with other conventional forms of investments.

Please, bear in mind that Dukascopy Bank does not guarantee exchange rate of Dukascoins to EUR, and the price can decrease or increase according to customer demand.

USE CASE 1. One year Coin Stake Reward projected profitability in case if the exchange rate of Dukascoins remains unchanged at the expiration of the Stake term.

Let's assume that you have 1,500 EUR and consider “moderate” return of Dukascoin Coin Stake Reward for an amount of 1,000 DUK+. In this case you can accumulate on your MCA account 1,500 EUR and buy 1,000 DUK+ on internal marketplace at the current exchange rate of 1.5 EUR per 1 Dukascoin. According to the current reward rate schedule your yearly income rate will be 20% (200 DUK+). Thus, at the expiration of the Stake you will have 1,200 DUK+. In case if the exchange rate of Dukascoin stays at the same level of 1.5 EUR per 1 Dukascoin you will be able to sell 1,200 DUK+ at 1.5 and get back 1,800 EUR. As a result, the yearly rate of return will be: 1800/1500 * 100 - 100 = 20%.

USE CASE 2. One year Coin Stake Reward projected profitability in case if the exchange rate of Dukascoins rises to 2 EUR per 1 Dukascoin at the expiration of the staking term.

Let's assume that you have 15,000 EUR and consider applying for the Dukascoin Coin Stake Reward with the aim of collecting an impressive return of 8,000 DUK+. In this case you will need to invest 15,000 EUR and buy 10,000 DUK+ on the internal marketplace at the current exchange rate of 1.5 EUR per 1 Dukascoin. According to the current reward rate schedule your yearly income rate will be 80% (8,000 DUK+). Thus, at the expiration of the Stake you will get your 10,000 DUK+ returned back and a reward of 8,000 DUK+ on top. In case if the exchange rate of Dukascoin reaches 2 EUR per 1 Dukascoin you will be able to get back already 36,000 EUR by selling your 18,000 Dukascoins at the rate 2 EUR per 1 DUkascoin. As a result, the yearly rate of return will be: 36,000/15,000 * 100 - 100 = 140%!

Clients looking for a more conservative type of investment combining crypto and fiat income may be interested to consider another reward program offered by Dukascopy Bank – EUR Reward staking. This program currently offers a reward of 0.5 EUR per every Dukascoin allocated on Dukascopy Bank custody.

USE CASE 3. One year EUR Reward Stake projected profitability in case if the exchange rate of Dukascoins rises to 2 EUR per 1 Dukascoin at the expiration of the staking term.

You decided to buy 20,000 DUK+ and allocate this amount to a EUR Reward Staking. You will need 30,000 EUR available on your MCA account to buy 20,000 DUK+ on the internal marketplace at the rate of 1.5 EUR per 1 Dukascoin. The yearly income gained on a 20,000 DUK+ stake will be 10,000 EUR. Thus, at the dstake eposit expiration date you will get your 20,000 DUK+ returned back and a reward of 10,000 EUR on top. If you decide to immediately sell the 20,000 DUK+ coins and the exchange rate 2 EUR per 1 Dukascoin at the expiration of the stake term you will get a total of 50,000 EUR on your MCA account. The yearly rate of return will be 50,000/30,000 * 100 - 100 = 66.6%!

COMPARATIVE TABLE OF INCOME GENERATED BY REWARD PROGRAMS