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Simple musings about LINKSWAP staking rewards for $YFL holders
Why it matters and what you need to know below
Why it matters and what you need to know below
Per governance proposals that have passed, YFL holders who stake their tokens in the governance vault will receive 10% of trading fees and 80% of listing fees once the treasury is full (which is capped at $100k USD)
Here’s how this breaks down:
LINKSWAP trading fee = 0.3%
YFL staking reward = 10% of these fees + 80% of listing fees
LINKSWAP trading fee = 0.3%
YFL staking reward = 10% of these fees + 80% of listing fees
There are 3 main factors that will influence the return YFL stakers receive:
1. LS trading volume
2. # of projects being listed
3. How many YFL are staked
1. LS trading volume
2. # of projects being listed
3. How many YFL are staked
Let’s say LS captures 2% of Uniswap’s 24 hour trading volume in the first month of launching, this will equate to ~$5m in daily volume:
* $1,500 distributed to stakers
* Assuming 5,000 YFL are staked, this equals $0.30 per staked token, per day.
So 100 YFL will = ~$930 monthly
* $1,500 distributed to stakers
* Assuming 5,000 YFL are staked, this equals $0.30 per staked token, per day.
So 100 YFL will = ~$930 monthly
In essence, the $ amount that each YFL provides each day will vary directly with the fees harvested by trading volume.
BUT WAIT, THERE’S MORE!
BUT WAIT, THERE’S MORE!
YFL stakers will also receive 80% of the fees from new project listings, which varies between $2,000 and $3,000 per project.
There’s already a few listings lined up, but it’s hard to say just how many there will be going forward...
There’s already a few listings lined up, but it’s hard to say just how many there will be going forward...
At the end of the day, there are many variables to take into account.
But even if LINKSWAP captures just a *tiny* fraction of Uniswap’s trading volume, $YFL holders will be handsomely rewarded.
40-80% APYs for staking are very realistic...
But even if LINKSWAP captures just a *tiny* fraction of Uniswap’s trading volume, $YFL holders will be handsomely rewarded.
40-80% APYs for staking are very realistic...
