How To Estimate BluDAC Liquidity Pool Yields

7 months ago   •   4 min read

By Craig Fulton
Table of contents

This is a quick and dirty guide on how to work out your BluDAC liquidity pool yield.

Don't know what BluDAC is? Think you can swim in a liquidity pool?

Start here first:

Blu DAC Launching Liquidity Pool Rewards | Arodie.com
Blu DAC is launching a rocket in the shape of third party liquidity pool rewards for tokens on the WAX blockchain.

We will talk about AIMY (Average. Intergalactic. Mining. Yield) in this article, but BluDAC are still working on this feature and we will update you on any changes.

Post-staked pool

If you already have LP tokens staked in a liquidity pool, it's really easy to work out your potential earnings.

Let's take my pool of BLUVOID as an example.

All we need to do is take our personal staked total and multiply it with the AIMY (Note: AIMY now has 4 decimal places, so it's even more accurate).

As you can see, we end up earning 13,599 BLU per day on the current rates. That's amazing!

Just keep in mind that every day more people are providing extra liquidity, reducing the AIMY and the value of your personal staked total (the reverse can happen too).

To compensate, you can simply stake more in the pool, so although the AIMY will decrease, your total personal stake will increase. Also, note that additional LP staked to a pool won't be harvested until the next epoch.

There are 5 million BLU tokens being released to each pool for 30 days (with exception of BLUWAX which is 20 million or 666,666 per day), so the AIMY is a daily drop of 166,666 BLU divided by the Total Staked in the pool.

Now you know how to work out your BLU yields from a pre-staked pool. Woop!

But how do you estimate yields from a pool you haven't staked to yet?  

Pre-staked pool

Let's say we had some BLU & WAX and we wanted to provide liquidity to this pairing. But we aren't sure how much BLU we would earn from being in this pool.

First, we want to add how much liquidity we want to provide on the Alcor Exchange. If we go for 5k BLU, we will need 1322.79477101 WAX to provide liquidity.

Alcor Exchange Liquidity

Just below the provide liquidity button are the details we need:

Position (LP-T) is the amount of BLUWAX we will receive for providing the liquidity, giving us a 0.30% share of the pool.

All we need to do is take the expected BLUWAX and multiply it by the AIMY, so 2431 x 0.87 = 2,115 BLU per day (at current rates).

Of course, if you provide a lot of liquidity, the AIMY rate will decrease. Let's say you were going to receive 100k BLUWAX (lucky you!), you could add 100k onto the Total staked (762,879) to give a new total of 862,879.

Next, simply divide 666,666 (the amount of BLU dropped to BLUWAX per day, for 30 days) by 862,879.

This would move the AIMY down to 0.77, estimating that your 100k BLUWAX would earn 77k BLU per day.

Damn, now that's what you call flying with liquid hydrogen!

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