Hi community,
Im having some trouble understanding how APY is calculated on liquidity pool in binance.
Im seeing DUSK/USDT pair it says it haves 70% APY , but then on info it says you win 70% of dusk.
So then if i put 100 DUSK i have to put 10USTD (aprox). Thats an initial investement of 22USTD
Then if i win 75% dusk ill end up with 175 dusk + 10 USTD which gives me 30 usdt. Thats waaay less than 70%.
But then I went ahead and tried it with little money. And 3 days have passed price is almost the same as when I started so no PNL or impermanent loss.
And then I went ahead and annualize my earnings and I have something closer to 70%. Which got me confused , obviously 3 days is not a represetative sample, could be 3 good days.
But it left me wondering how can I calculate the real APY of the liquidity pool.
Thanks in advance
Edit: I think I got it , the 75% is 75% of your whole investement , but payed in dusk.
In this case 75% of 22USDT which is 16USDT but payed in dusk its 138 which is way higher than 75 dusk. That was my mistake.
Edit2: If you are reading this and learning , be careful I didnt speak about impermanet loss here! ITS IMPORTANT!
[link] [comments]
You can get bonuses upto $100 FREE BONUS when you:
π° Install these recommended apps:
π² SocialGood - 100% Crypto Back on Everyday Shopping
π² xPortal - The DeFi For The Next Billion
π² CryptoTab Browser - Lightweight, fast, and ready to mine!
π° Register on these recommended exchanges:
π‘ Binanceπ‘ Bitfinexπ‘ Bitmartπ‘ Bittrexπ‘ Bitget
π‘ CoinExπ‘ Crypto.comπ‘ Gate.ioπ‘ Huobiπ‘ Kucoin.
Comments