RE: Earn 24% Renting Steem Power with MinnowBooster! #8

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Earn 24% Renting Steem Power with MinnowBooster! #8

in steemsecrets •  7 years ago 

I have no idea how this works lol
If the lease cost is 100 STEEM and Delegation payment is 90 STEEM, it means I pay 100 STEEM and receive back 90 in daily increments o.o
I know I didn't get it right, care to elaborate? xD

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Correct you get back 90 Steem in daily increments, so if the lease is for one week (7 days) you will get 12.857 Steem per day for 7 days. If you cancel delegation early the lessee will be refunded the balance not yet paid out to you. We don't encourage early cancellation as this is essentially breach of contract.

Why the hell would anyone do this? If I deposit a 100 STEEM to get 90 back?

Because you get the initial 100 back. It's a very basic financial concept: interest and investment.

Why does anyone buy a certificate of deposit?

So I get a 190 Steem?

I doubt the rate of return is that high, but of course you never give up your initial delegation. It's always yours. You get that back plus a payment.