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

5 months ago
3 Min Read
551 Words

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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.



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