I'M sure this has been addressed in the past but

Question

I'M sure this has been addressed in the past but

what determines the apr for the liquidity pools? I know amount of liquidity provided plays a role (more money put in, lower the rate goes) but what else causes this?

I feel like the amount of capital put into these pools has not increased very much or at all in some pools, but their apr has decreased. So I am just wondering what causes decreases outside of increased provided liquidity.

Thanks.

#blockchain #cryptocurrency #defichain #english

0

20.05.2022

7 ответов

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mholdy.xpr Автор вопроса

Spencer L
You also have the 1.658% drop every 32,690 blocks.

That's about every 11 days if I remember correctly? So the combination of this and decreasing value of the underlying and liquidity provided contributes to the decreased apr? I'm just trying to figure out how we were hovering in the 80 percent range on most assets for a good while, steadily, and then in a matter of a week and a half we are in the lower 60s (on average). Also, I'm grateful for these percentages and yes I know its much better than the 0.000000005 percent I get in a traditional bank account haha!! Just wanting to understand a little better. Thanks!

0

20.05.2022

Spencer L

mholdy.xpr
That's about every 11 days if I remember correctly...

1. Yes, 11.35 if you want more accuracy 😉 2. Correct! DFI went down from about 4.2 to 2.8 which is a 33% drop, so the value of the rewards is down quite a bit. 3. Me too, banks are eager to take 17% APR on the credit card and raise interest every rate hike but not so eager to raise savings APY...

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20.05.2022

mholdy.xpr Автор вопроса

Spencer L
1. Yes, 11.35 if you want more accuracy 😉 2. Corre...

Thanks Spencer. You deserve a pay raise 👏 haha! This makes total sense to me now. So the possibility of apr going back is is still there. I didn't realize that due to decreasing in asset value, aprs drop with it. This makes me feel much better!!! Yes, literally my bank account serves 2 purposes. A place for my employer to send my earned money, and to pay bills.... savings accounts are a place store money until I'm ready to put it to work. Otherwise they are useless...

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20.05.2022

Spencer L

mholdy.xpr
Thanks Spencer. You deserve a pay raise 👏 haha! Th...

I'm not paid, I moderate as volunteer work and you can too! Anyhow, I'm glad that my explanation made sense to you 😁 And like you I keep only savings and other necessary fiat money in a bank account as well! A lot of my money is in low-risk dividend stocks/ETFs as "savings," at least it will earn more money there :D

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20.05.2022

mholdy.xpr Автор вопроса

Spencer L
I'm not paid, I moderate as volunteer work and you...

Haha someone needs to pay you more. Idk what you do for a living but they need to pay you more. If you are retired, you need to pay you more haha!! Seriously though, thank you. And I agree. I'm doing the same thing!

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20.05.2022

Spencer L

mholdy.xpr
Haha someone needs to pay you more. Idk what you d...

Thanks! And you're welcome.

0

20.05.2022

Spencer L · Accepted Answer

Spencer L

You also have the 1.658% drop every 32,690 blocks.

0

20.05.2022

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I'M sure this has been addressed in the past but

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