The DEC and WLEO Liquidity Pools - DEC seems to have a better rate of return, for now!

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Now that it's possible to benefit from both WLEO and DEC liquidity pool bonus offers, which offers the better return?

The Liquidity pool bonus offers are both remarkably similar in structure:

  • LEO offers 300 000 LEO over a 3 month period
  • Splinterlands offer 3000 pieces of LAND (valued at $20 each) over a 3 month period.

With both reward pools to be spread proportionate to stake vested in the respective liquidity pools.

For info on how to get involved you can read:

I'm currently holding steady with just over 1% of the WLEO pool, which is what I'd aimed for, however it's been necessary for me to stake around 8500 LEO, worth around $2000 to control that 1%.

Meanwhile with DEC, as it currently stands, the total liquidity there is only $64 000 ($112 000 minus the $50 000 Splinterlands' stake not being counted towards the liquidity pool rewards), so the 300 000 DEC I staked yesterday, worth $210 gives me a 0.3% share of that pool. A $600 stake, or 900 000 DEC would take me up to 1%

A comparison of the returns from the WLEO and DEC liquidity pools

I did a spread sheet to work out the returns at current prices and liquidity pool positions - turns out that DEC offers much better returns ATM.

Screenshot 20201004 at 14.01.40.png

  • WLEO yields you an APR of around 112%
  • DEC yields you an APR of around 375%


However, perhaps unsurprisingly, things are levelling out. Just yesterday, before people got in on DEC I'd worked out that the return was twice as good as that! THAT changed very rapidly and of course it could change again, bringing them closer together!

There were some very large DEC buys and sells of Hive Engine yesterday I noticed!

Qualifications

  1. All of the above are dynamic - your relative return can change overnight by one large stake to the liquidity pool or either DEC or WLEO.
  2. None of the above takes into account the future price value of LEO or LAND - TBH I think the current returns on LAND above are a little generous because I've gone with the final market valuation of land, if you get in on the pre-sale you get 50% off and more if you buy in bulk!
  3. I haven't factored in the raffle tickets you get with with the DEC liquidity offer.
  4. NB I did factor in the opportunity cost of money lost by not earning curation returns on LEO. There is no such opportunity cost with staking DEC for land if all it was doing was sitting there waiting for the land pre-sale!

Final Thoughts....


I've got about 1 more ETH left to play with, whether I go with more DEC or more LEO, I just don't know!

Maybe it's just a matter of buying more ETH and getting more into both? I've got a fair bit of DEC and LEO to play with, just not the ETH!!!

These are some GREAT RETURNS with both deals! Especially DEC!

TBH there are so many people with eyes on the returns who are into both LEO and Splinterlands, I'm sure the overall return for most people staking for the 3 month return based on the liquidity pool bonuses is going to to pretty similar for either the DEC pool or the LEO pool.

Posted Using LeoFinance Beta