Mining

Mining Frequently Asked Questions about Deri Protocol

What do I harvest for liquidity farming?

For the time being:

The Profits of the base token in which you provide liquidity. Please note that this part of the return is not certain: there is a possibility of loss (i.e. impermanent loss). However, the probability of impermanent loss on Deri liquidity farming is much smaller than that of Uniswap due to the protection of arbitragers. This part of the yield is included in the increment of the share value of the liquidity shares. You will get the profit when you withdraw liquidity from the pool.

The Yield of DERI token. DERIs, the protocol tokens are distributed to liquidity providers according to their liquidity contributions daily. Unlike the base token profits, this part of yields is certain. It's proportional to the dollar value and the time length (i.e. timed value) of your liquidity contribution.

What constitutes the APY of mining and how can I verify it?

The APY of liquidity mining only includes the yield of DERI award, whereas the profit of the base token is not included. LP's profit (or loss) of the base token is reflected in the change of Liquidity Share Value. That is, the part of the base token profit (or loss) will be realized when you withdraw your liquidity.

To verify the APY of liquidity mining, let's take that of trading pools as an example:

  1. At t0, record "My Harvest in Current Epoch" as H0;

  2. At t1, record "My Harvest in Current Epoch" as H1;

  3. Calculate APY=PDERI(H1H0)Y(t1t0)LAPY=\frac{P_{DERI}(H_1-H_0)Y}{(t_1-t_0)L} , where PDERIP_{DERI} is the price of DERI, Y is one year's time, L is your liquidity contribution.

Please wait to have (t1-t0) long enough (e.g. 30 min) so that the estimation is close.

Is the liquidity mining on Deri pools risk-free?

No, it is not. Liquidity mining on Deri pools is subject to market risk due to the possible net position. However, please note that such market risk is different from the impermanent loss of spot exchanges (e.g. Uniswap or Sushiswap). First of all, the fact it is called "risk", instead of "loss", indicates that the result could be positive or negative (whereas the result of "loss" is negative with certainty). Secondly, the probability of a negative result (a loss) on Deri liquidity farming is much smaller than that of typical spot exchanges due to the protection by arbitragers, although, a certain market risk remains. You might think of liquidity mining on Deri as investing in a low-risk fund with potentially very high profit, whereas that risk-free liquidity mining is like depositing your money into a bank saving account.

Please refer to our whitepaper for further details regarding the protection by the arbitrage mechanism.

Is the liquidity mining on SushiSwap, SushiSwap Onsen & PancakeSwap Deri risk-free?

No, it is not. Liquidity mining on SushiSwap, SushiSwap Onsen or PancakeSwap are subject to the risk of impermanent loss. Any resulting permanent loss caused by removing the liquidity is in the user's responsibility. Use only the listed pools on our website to add liquidity. Adding liquidity on empty pools directly over SushiSwap e.g. the DERI-ETH pool can cause a huge or total loss. Any resulting permanent loss caused by removing the liquidity is in the user's responsibility

Why can't I claim my DERIs although the epoch ended?

In the first 30min after every epoch ends, you can’t claim since the engine has to process first. Afterward, you will be able to claim your harvest of the past 8 hours (plus whatever you have mined before but not claimed yet).

Do I have to claim my DERIs after the epoch ended?

No, you don't have to claim your Unclaimed DERIs. You can spare them and claim them at any time you wish, as long as the engine has finished processing(>30min after every epoch ends).

Why do the stablecoin APYs sometimes differ?

Since both, formula and variables, remain the same for each trading pool, the APY is identical for all pools (except Sushiswap Onsen). However, since some pools belong to a different blockchain each, the APYs are really synced by an algorithm, which is not completely real-time. That's why you see sometimes minor diff between them.

How to withdraw premining liquidity assets?

Premining is finished, you can unstake from premining pools here (https://premining.deri.finance (https://premining.deri.finance/)).

How to claim my premining DERI award?

You can claim the premining DERI award at any time you wish from any pool at mining page (https://app.deri.finance/#/mining), as long as the engine has finished processing.