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Moon Rewards for liquidity holders from CCIP-051 (if live now) would pay out 88% APR on top of regular rewards from fees

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Moon Rewards for liquidity holders from CCIP-051 (if live now) would pay out 88% APR on top of regular rewards from fees

CCIP-051 appears that it will pass and now it's only a question of how exactly will it be implemented and what will rewards look like when it does? So I was running some quick number based off current numbers in the liquidity pool, it looks like the APR from CCIP-051 is just over 88% (this will likely drop)

Important numbers:

SushiPool currently contains 287K Moons and 38.31 ETH at current price of moons this is equal to roughly 574K moons.

39K moons would get distributed from last snapshot (this number will change) X 13 Snapshots in a year = 507K moon distributed a year

507K/574K = 88% APR (not compounding)

At the current price of Moons, last amount of leftover Moons, size of liquidity Pool below is a breakdown of potential moon rewards over a year

Moon Rewards are over a year and likely to change for reasons below*

The follow things can change the value/amount of rewards

  • Changes in leftover mod Moon Rewards (should naturally drop over time)
  • Decrease in the value of Moons
  • An increase in the size of the liquidity Pool. (will cause you to need more assets to have the same percent ownership of the pool)

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But as it currently stands rewards from CCIP-051 are at an estimated 88% annually.

Please know providing liquidity creates the risk of impermanent loss and potential for losses from exploits of the liquidity pool.

If you would like to know how to provide Liquidity for SushiSwap, I made an incredibly detailed guide - you can find that here.

submitted by /u/GabeSter
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