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Alternate cryptocurrencies => Altcoin Discussion => Topic started by: Mr.Ease on December 12, 2023, 02:51:57 AM



Title: Osmosis LPing Rewards Help...
Post by: Mr.Ease on December 12, 2023, 02:51:57 AM
Hello. I am fairly new to the osmosis liquidity pools and have some questions that someone here can probably answer.

How do the rewards get distributed?

I have scoured the internet and cannot figure it out. So I will just explain it here and hope someone answers...

I am invested into Osmosis Pool #1
- Atom/Osmo
I superfluid stake the Osmo.

The reward calculation says 19%APY
Comprised of:
- Fees ~ 2.5 %
- superfluid staking ~ 3.5 %
- External added osmo ~ 13 %

OK. That all sounds great. I do get a daily distribution in osmosis - BUT!!!

Every attempt to calculate the APY based on the daily distribution of OSMO received is way lower than 19%.

My calculation is:
(daily reward X 365) / (OSMO LP Balance X 2)   and that comes out to something like 8% APY.

SO. What am I missing?

I am used to LP shares gaining value from the FEES in other protocols... Do the LP shares in OSMOS gain the fees so the Atom/Osmo value grows?

Either way, that still wouldn't explain an 8% APY... as the External Added Osmo is supposed to be 13%

Anyone? Thank you?