I have a question that's been bugging me for a

Question

I have a question that's been bugging me for a

while... and I still don't quite understand the mechancics of it...
Say, for example, I had deposited into the HARD/USD pool in the past when it was rewarding 220%. Now the APY is much lower (160%) and I deposit more money into it now. Will the money I had put in in the past recalculate to pay out 160%? I'm talking only about the rewards here, not impermament loss of the deposited funds themselves.

#blockchain #cryptocurrency #english #kava

0

19.02.2022

4 ответов

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CryptoDaz (Darren)

The rewards are a set amount of SWP tokens shared between all liquidity providers at at one block, so if you have 1% of the enitre pool you will earn 1% of the total SWP rewards allocated to that pool The amount earned cannot be changed The Reward APY shown is based on the SWP token price at that time, so although you may have earned 100 SWP today which when multiplied out gives an annual yield of 200%, but this might be based on a SWP toklen price of $1.68, but if in 12 months time the vlaue os muich lower or higher the actual yield you can realize by sellling would alos bne much lower or higher The actual current yield also varies day by day as it will vary with the SWP token price. If SWP was to rise by 10% overnight the new yield would be 10% higher as the value of the rewards will have risen by 10% despite still earning the same number of SWP as the day before The other factor is the size of the pool If more assets get added your share and number of rewards goes down which would reduce the yield Also if the price of the supplied asset rises the yield figure would go down, because even though the quanities haven't inceased the value of the rewards compared to the value of the asset has gone down. In this case you would still get the same number of SWP rewards with the same value but your supplied asset value will be higher The SWP pool only changes in yield when the total amount of SWP supplied changes because if SWP doubled in value the total value of the pool has doubled and so has the value of the rewards

0

19.02.2022

Ben M Автор вопроса

Kurt
APR is changing constantly. You get the current % ...

Thanx

0

19.02.2022

J

Ben M
Thanx

I would highly suggest people track their returns in how many coins they are earning per week. I use Lend and earn about 50 KAVA per week. If that number goes up or down I can understand more easily what that means. The APY are measured in USD for what the coins were worth in that moment. So if kava price tanks the APY goes down, but in reality I still received the same amount of coins that week.

0

19.02.2022

Kurt · Accepted Answer

Kurt

APR is changing constantly. You get the current % for all the token, that you invested, no matter when you contributed them to the liquidity pool.

0

19.02.2022

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