For those that don't know CCIP-051 rewards pay out extra Moons to those who provide liquidity on SushiSwap. The payout of rewards are relative to your ownership of the pool. So the more liquidity you provide the more Moons you get! Currently the APR is 53%, but all variables that determines the APR (size of pool, value of moons, leftover mod rewards) will change and the rewards will drop. --------------------------- Here are Four reasons to be Bullish about CCIP-051 soon to be released: I. Rewards will be distributed through Sushi in real time and rewards will likely be displayed upfront. Just like Moon users taking advantage of this - people not already in the Moon ecosystem will have to buy Moons with ETH in order to take advantage of the extra rewards from CCIP-051 rewards. II. Moon Rewards for Liquidity Providers will not impact your KM. The Moon Rewards can be readded to liquidity or sold in full and you will not see any impact to your KM. III. CCIP-051 rewards are in addition to Sushi rewards currently at 2.75% APR and trading fees earned from providing Liquidity. This means by providing Liquidity you are eligible for three separate reward processes. IV. A Bigger Liquidity Pool Means healthier and more stable Moons. The larger the Pool the less impact any single Buy/Sell will have on Moons. As the size of the pool grows it becomes harder for any single entity to dramatically move the price with a buy/sell. --------------------------- Before you provide Liquidity make sure you understand impermanent loss, "essentially the total value of your assets losing value compared to just holding the two separate tokens". For a simplified explanation you can read this post. If you want to provide liquidity on SushiSwap you can look at this detailed guide for step by step instructions. Important: You will need to stake your liquidity tokens after providing liquidity to be eligible for Sushi rewards and CCIP-051 rewards. A mod stating extra rewards, soon. Last important Note: By providing Liquidity you will increase the size of the pool and the rewards will drop. This will naturally happen over time [link] [comments] |
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