Earn a 50% APY on WLEO | LeoFinance's Liquidity Provider Incentives Walkthrough and Calculations

in LeoFinance2 months ago (edited)

▶️ Watch on 3Speak


Last week, we released a post on @leofinance outlining the new Liquidity Provider incentives program. This program is modeled after the popular DeFi system called "Geysers" which distribute incentives in the form of tokens to liquidity providers who add liquidity to a pool early on and stay in the pool for a long time relative to other LPs.

This system can be quite complicated to understand if you look deeply and want to project a % APY yield. This is due to all of the variables that are at play:

  1. How long have you been in the pool?
  2. How much liquidity is in the pool?
  3. What are the prices of the pooled assets (WLEO and ETH in this case)
  4. Has anyone else removed/added liquidity since the pool started?
  5. Have you added/removed liquidity from your position

As we discussed in that post and over Discord when users asked, the simplest way to earn LP incentives is simply to provide liquidity early on and leave it in the pool for as long as possible.

With the Geyser system, the highest APY % will go to users who pool WLEO early on and leave those assets on autopilot. When a user adds or removes liquidity, the APY % will fluctuate.

So if you're the type of user who wants to earn as high of a yield as possible and don't want to worry about nitty gritty details of a geyser distribution ecosystem, then you can just provide liquidity early on and leave it in the pool. Then you don't even have to think about this stuff.

However, as crypto power users and investors, many of us like to extrapolate yield and play around with various mechanics to understand what our assets are doing. If this sounds like you, then this video will be a great way to see how the WLEO LP Geyser works under the hood.

This video will show you how to use the LP incentives simulator that we built in order to take the current pool numbers, your current LP position, randomized providers and then extrapolate projected APY returns over a set period.

If you have any questions about how this works or anything related to LeoFinance, leave a comment below or hop in our Discord.

 

 

LeoFinance is a blockchain-based social media community for Crypto & Finance content creators. Our tokenized app allows users and creators to engage and share content on the blockchain while earning cryptocurrency rewards.

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▶️ 3Speak

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Congrats on the launch of WLEO and for all the efforts put in this project.
I have a somehow side question though: will we soon have notifications for leofinance.io like on peakd?

Posted Using LeoFinance Beta

Happy to have WLEO back in action! Yes, we do have it on the roadmap but it won’t be like PeakD’s. It will resemble a much closer system to something like what Twitter and other social media platforms have.

Push notifications in various forms, setting, alerts.. even price movements. We have a design created for the system and we’ll build it in a future iteration. We are at least a few months away from developing it though

Posted Using LeoFinance Beta

Sounds good.

Posted Using LeoFinance Beta

Excellent video that explains well the great opportunity to earn LEO by participating in the WLeo-ETH pool.

If you share on Twitter I will retweet my over 3k followers 😊

Posted Using LeoFinance Beta

Thanks!

I posted it from the main LeoFinance twitter handle ;)

Posted Using LeoFinance Beta

You are right! I've only seen it now 😅

Retweet done! 💪

Posted Using LeoFinance Beta

You should add the link to the sheet inside the post... I know that you did it before, but it would be handy to have it here also... ;)

Posted Using LeoFinance Beta

That is a considerable ROI for the wrapped LEO on Uniswap. 50% is a return that is reasonable and also balances the LEO Finance ecosystem without throwing to many tokens out of the window. Incentivizing, but also not promising 1000+% shows that everything is grounded in reality and in the financing that this community is valued for.

Posted Using LeoFinance Beta

I want to add liquidity, but I don’t have much to invest. Is there a recommended minimum? What is the average amount people are providing?

Posted Using LeoFinance Beta

If the total fee to get in and out is $8... it is in your best interest to make sure the LEO rewards paid will at least cover your entry and exit fee.

Using $0.20 per LEO and 30% pool apr and 500 wLEO initial liquidity ($200 total added: $100eth $100wLEO) will earn about $30 in LEO per year.

Posted Using LeoFinance Beta

You Are doing your best. Always on Point. Much Love

Posted Using LeoFinance Beta

Early liquidity plus a considerable amount of time. Great to just and envisage the prospect of passive income. The opportunities on Leo are just too exciting

Posted Using LeoFinance Beta

I think I'll skip for now because I only have a really small amount and buying is also not an option during the harsh pandemic situation.

Good luck in the pools for those who are providing! You are special!

Posted Using LeoFinance Beta

First of all I want to congratulate you on this great project, the changes that have had in the Leo interface.

Although I have little time on this platform, I would like to know if there is a recommended minimum to invest?

Posted Using LeoFinance Beta

Great opportunity that one will not want to miss out. But it still look a bit complicated for me to to understand how those stuffs works

More exciting news springing up from Leo finance

Happy to see my post in the 16:00 mark! lol

Congratulations to everything that's happening on leofinance.io. This adds to my crypto education. The Geyser model looks good. :)

Posted Using LeoFinance Beta