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RE: CUB Data On Total TVL By Farms and Dens, Inflation and Price

in LeoFinance3 years ago

I'm still trying to get my head around this stuff and was wondering ...

The last time I looked the DEC-BUSD farm had a higher APR than the CUB-BNB and CUB-bLEO ones but now it is lower. Any idea what the reason is for this?

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The APR changes based on how much is in the pool. For example, if one of the farms was paying 300% APR and then some people decided to put more money into it, the APR would drop. That little number with the "x" next to it is the representation of how much of the newly minted Cub is going to pay the people in that pool. If more money goes into the pool, the amount of Cub being paid to that pool stays the same, but it gets divided among more people. Thus, the APR% goes down. If people leave the pool, it goes up.

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Thanks for the excellent explanation.

Does that mean if I add more liquidity to the pool the APR goes down but I get more of the newly minted CUB because my stake is larger?

!ENGAGE 30

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Correct. You get a percentage of what is mined/minted based on your percentage of the total pool. If you were the only person in the pool, then it wouldn't matter how much you had in there, you'd get it all. If you hold 10%, you get 10% of the rewards. If people leave the pool and your stake becomes 20% of what's in there, you would then start to get 20% of the rewards.

If the APR is currently 250% and the pool doubles in size, the APR would go down to 125%. If you were the one that doubled it, you'd only be getting 125% but you would be making more actual reward because your percentage of the pool would have grown substantially.

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Thank you for your engagement on this post, you have recieved ENGAGE tokens.

DEC is a small cap token, low amount of TVL in the pool

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