How often should you claim your Liquidity Rewards for Maximum Yield?

Let's face it, we are all hyped about Moon liquidity rewards right now, so let's further hype it by checking how we can maximize our yield!

In theory you would want to claim rewards as often as possible and add them to the stake. However in reality this will quickly saturate, and simply not be worth the effort once you reach a certain rate. More important: You pay a fee for each time you claim and add to liquidity, so if you do it too often your yield will drop.

Luckily Nova has super low fees. Considering you harvest your reward, swap half of it for ETH, add it to liquidity and stake it again, your fee should be about 0.0000073 ETH or about 0.011$. Pretty amazing for 4 onchain transactions.

Let's look at 3 examples with 100, 1k and 10k moons in liquidity with the current numbers. For this I took ETH @ 1570$, Moons @ 0.203$ and rewards APR @ 43%:

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APY with 100 moons in liquidity

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APY with 1k moons in liquidity

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APY with 10k moons in liquidity

With an APR of 43%, you can in theory reach an APY of over 53%.

If you hold only ~100 moons in liquidity, you shouldn't claim too often. Once or twice per month will be close to the best performance.

With ~1000 moons in liquidity your performance is best at claiming weekly. If you have ~10k moons in liquidity, you could even claim daily, but weekly will almost have the same performance.

But no matter how hyped you are right now, please don't claim your rewards every minute!