🎚️Profitability Meter

Understanding the Profitability Meter

What is the Profitability Meter?

The Profitability Meter is a unique metric that helps users assess the attractiveness of their potential Demand within DEIN's personalized insurance.

How does the Profitability Meter work?

The Profitability Meter uses a scale from 1 to 100, with higher values indicating greater attractiveness. It calculates this attractiveness based on profit (Premium) return values ranging from 0.25% to 4%.

How is the Profitability Meter different from traditional metrics like APY?

Unlike the Annual Percentage Yield (APY), which represents an annualized return over a longer period, DEIN's Profitability Meter focuses on an Instant Reward model. This model includes a lockup period lasting up to a maximum of one month.

Why the percentage values may appear lower compared to some APYs?

While the percentage values used to calculate the Profitability Meter may seem lower, it's important to remember that this metric represents an instant reward with a shorter lockup period. To make a fair comparison, you should scale up the Profitability Meter's return values by a factor of 12 to account for the difference in timeframes, giving you an annualized view.

Was it really necessary to create a new profit metric like the Profitability Meter?

DEIN's personalized insurance offers a unique Instant Reward model that's different from traditional insurance and de-fi products. Therefore, a novel metric like the Profitability Meter is needed to accurately gauge the attractiveness of demand opportunities within DEIN's ecosystem.