💸 Geniuses of math or how to increase APR in a pool
Math is indeed the queen of all sciences. On April 23, TON Foundation launched a campaign to increase rewards in liquidity pools (LP Boosts) on decentralized TON exchanges STON.fi and DeDust.io. For this purpose, 5M TON was allocated, distributed as the TVL (total value locked) in the pool was dialed in. The goal was to provide a stable return of 50-60% APR for three months.
STON.fi, being "more experienced" and close to TON Foundation, immediately rushed for free money. They were rapidly growing their pool, something they were actively proud of both in their channels and in the TON Community channels. Both TOPs, funds, and regular users invested in the pool. The boosts increased and eventually they reached the $100M limit, taking all possible rewards and pouring them into the pool boost.
DeDust.io, on the other hand, did things more cleverly. He evenly added rewards based on decreasing APR (annual percentage rate). That is, it took its time and added rewards gradually, due to which most of the rewards were distributed for a shorter period of time, making the APR higher.
Now in the second month of award distribution, DeDust's APR is over 117%, while STON's APR is hovering around 85%. If you summarize all of DeDust's rewards, you can see that this isn't all the rewards loaded into the pool, and there's another 1.4M TON coming up! Apparently, the APR will be even higher (and by a lot) in the third month.
So DeDust outperformed STON, and as far as I know, STON employees don't even understand why their APR is lower. It turned out to be as simple as possible.
The parable of the tortoise and the hare in a decentralized world.
@investkingyru | @investkingyru_en | twitter | CMC | Private, Elite
$KINGY: DEX DeDust.io, STON.fi, Swap.Coffee and xRocket.
Math is indeed the queen of all sciences. On April 23, TON Foundation launched a campaign to increase rewards in liquidity pools (LP Boosts) on decentralized TON exchanges STON.fi and DeDust.io. For this purpose, 5M TON was allocated, distributed as the TVL (total value locked) in the pool was dialed in. The goal was to provide a stable return of 50-60% APR for three months.
STON.fi, being "more experienced" and close to TON Foundation, immediately rushed for free money. They were rapidly growing their pool, something they were actively proud of both in their channels and in the TON Community channels. Both TOPs, funds, and regular users invested in the pool. The boosts increased and eventually they reached the $100M limit, taking all possible rewards and pouring them into the pool boost.
DeDust.io, on the other hand, did things more cleverly. He evenly added rewards based on decreasing APR (annual percentage rate). That is, it took its time and added rewards gradually, due to which most of the rewards were distributed for a shorter period of time, making the APR higher.
Now in the second month of award distribution, DeDust's APR is over 117%, while STON's APR is hovering around 85%. If you summarize all of DeDust's rewards, you can see that this isn't all the rewards loaded into the pool, and there's another 1.4M TON coming up! Apparently, the APR will be even higher (and by a lot) in the third month.
So DeDust outperformed STON, and as far as I know, STON employees don't even understand why their APR is lower. It turned out to be as simple as possible.
The parable of the tortoise and the hare in a decentralized world.
@investkingyru | @investkingyru_en | twitter | CMC | Private, Elite
$KINGY: DEX DeDust.io, STON.fi, Swap.Coffee and xRocket.