Hey y’all, can someone help me understand something. Right now I can provide liquidity using WETH-BONE and get 105% APR. The reward will be in BONE which I can then stake for a whopping 987% APR. Doesn’t it make more sense to just stake the BONE itself and not provide liquidity? Calculations:
Lets say I have $1000 BONE and $1000 ETH. If I provide liquidity I’ll get back $2000 worth of SSLP?
I can then provide that SSLP to a Yield Farm to get BONE in return which I can then stake. From a medium article from Shibaswap: “one third of the rewards can be redeemed instantly while the rest are time-locked for six months.”
So does that mean I immediately get 1/3 of my rewards for the year instantly in BONE? If so, then I would receive ($2000 * 107%) * .33 = $706 in BONE
I can then stake that BONE. So, I’ve already made $706 essentially, right?
So after a year I’ll have $6968 ($706 * %987) assuming the APR stays the same.
Now, lets say instead I convert that $1000 WETH to BONE. After taking out gas fees(YIKES) I’ll have about $1900($1000 + $900) BONE. I’ll stake that immediately.
So, after a year I’ll have $18,753($1900 * 987%)
My calculations must be wrong. Can someone give an example?
submitted by /u/kingofwieners
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