There are already a few community-built tools that help you assess the potential of locking into a particular LP - a few links below:
terra.dyor.fi
share.streamlit.io
astroport-lockdrop-dashboard.surge.sh
public.flourish.studio
docs.google.com
/2
terra.dyor.fi
share.streamlit.io
astroport-lockdrop-dashboard.surge.sh
public.flourish.studio
docs.google.com
/2
These tools take quite a bit into account:
- Overall $ASTRO per LP (lockdrop + regular rewards)
- Liquidity / TVL on TerraSwap
- TVL locked so far
- Lock duration (avg and yours)
- $ASTRO price
- Your TVL contribution
There are certain aspects that seem to be missed.
/4
- Overall $ASTRO per LP (lockdrop + regular rewards)
- Liquidity / TVL on TerraSwap
- TVL locked so far
- Lock duration (avg and yours)
- $ASTRO price
- Your TVL contribution
There are certain aspects that seem to be missed.
/4
Those are:
(1) Changes in LP rewards
(2) Impact of $vxASTRO
(3) Changes of base APR (coming from trading fees) upon migration from TerraSwap to @astroport_fi
/5
(1) Changes in LP rewards
(2) Impact of $vxASTRO
(3) Changes of base APR (coming from trading fees) upon migration from TerraSwap to @astroport_fi
/5
(1) Changes in LP rewards
If you think you can lock $ANC - $UST for 52 weeks and enjoy sweet 88.31% APR + $ASTRO rewards, well... that's not going to happen.
$ANC LP incentives have been scheduled only for year 1. That is we will bid them farewell in March 2022.
/6
If you think you can lock $ANC - $UST for 52 weeks and enjoy sweet 88.31% APR + $ASTRO rewards, well... that's not going to happen.
$ANC LP incentives have been scheduled only for year 1. That is we will bid them farewell in March 2022.
/6
End of March 2022 is ~ 14 weeks away from the locking start.
Once that period ends, ANC-UST LP will only provide base trading rewards - currently 5.39% on TerraSwap - and $ASTRO incentives.
Don't get me wrong - that might still be a pretty good deal, just not as good.
/7
Once that period ends, ANC-UST LP will only provide base trading rewards - currently 5.39% on TerraSwap - and $ASTRO incentives.
Don't get me wrong - that might still be a pretty good deal, just not as good.
/7
A quick look at the tool showing # of wallets that locked for a certain period and I can tell that the above is not very well known... or maybe peeps don't care that much - who am I to judge?
Honestly, I expected much bigger concentration on week 13-14 than currently.
/8
Honestly, I expected much bigger concentration on week 13-14 than currently.
/8
The same story goes for other pairs:
- $MINE - $UST LP will cut $MINE incentives by 3x
- $PSI - $UST LP incentives might vanish entirely once @NexusProtocol builds some Protocol-owned liquidity (PoL)
- $VKR - $UST LP incentives will be cut by 2x on 13 Oct 2022
/9
- $MINE - $UST LP will cut $MINE incentives by 3x
- $PSI - $UST LP incentives might vanish entirely once @NexusProtocol builds some Protocol-owned liquidity (PoL)
- $VKR - $UST LP incentives will be cut by 2x on 13 Oct 2022
/9
Does that mean you need to change your decision? Not necessarily.
Would it make sense to reevaluate at least? Perhaps.
/10
Would it make sense to reevaluate at least? Perhaps.
/10
(2) Impact of $vxASTRO
Once we get our sweet $ASTRO we will be able to stake it and get $xASTRO and then lock that to get $vxASTRO.
Amount of $vxASTRO (and some other factors) will impact the amount of regular $ASTRO incentives provided to each LP pair.
/11
Once we get our sweet $ASTRO we will be able to stake it and get $xASTRO and then lock that to get $vxASTRO.
Amount of $vxASTRO (and some other factors) will impact the amount of regular $ASTRO incentives provided to each LP pair.
/11
I could not find detailed info about that (plz halp @astroport_fi, maybe one of your interns can describe it in the docs - current description is just not good enough).
I can see a couple of ways this could play out.
/12
I can see a couple of ways this could play out.
/12
EITHER
Current official allocations of $ASTRO to each LP have underlying assumption of equal $vxASTRO boost to each pool.
OR
There is an extra bag of $ASTRO for boosting that will be added to each pool according to booster formula.
/13
Current official allocations of $ASTRO to each LP have underlying assumption of equal $vxASTRO boost to each pool.
OR
There is an extra bag of $ASTRO for boosting that will be added to each pool according to booster formula.
/13
I know, this sounds vague and we know not much about it... still, I have not seen anyone mention that yet.
Well, now you have. :)
/14
Well, now you have. :)
/14
(3) Changes in the APR after migration
Basic income of any LP comes from trading fees. TerraSwap charges 0.3% on any swap and that whole amount goes to LP providers. Quite generous.
It won't be like that with @astroport_fi.
/15
Basic income of any LP comes from trading fees. TerraSwap charges 0.3% on any swap and that whole amount goes to LP providers. Quite generous.
It won't be like that with @astroport_fi.
/15
For regular pairs with x*y=k AMM the fee will still be 0.3%, but only 0.2% will go to LP providers. A drop by 1/3 vs TerraSwap.
Whatever you see on coinhall.org in the APR column, remove a third from that to get the @astroport_fi base APR (before any incentives).
/16
Whatever you see on coinhall.org in the APR column, remove a third from that to get the @astroport_fi base APR (before any incentives).
/16
Even more for the stableswap pairs (e.g. $bLUNA - $LUNA). Here 0.05% will be charged as a trading fee, with only 0.025% going to LP provider pockets.
0.025% vs 0.3% - a factor of 12x difference.
/17
0.025% vs 0.3% - a factor of 12x difference.
/17
Should that discourage any of you from locking LPs in @astroport_fi or providing liquidity at a later date?
Hell no! I am definitely going to lock, and likely will lean towards longer timeframes.
I hope you do it knowingly though. I hope I helped with that part. ;-)
/18-end
Hell no! I am definitely going to lock, and likely will lean towards longer timeframes.
I hope you do it knowingly though. I hope I helped with that part. ;-)
/18-end
Loading suggestions...