As a miner you certainly earn your DERI reward (APY), but you can also earn from the transaction fees, the funding fees and the losses of the trader (while transaction & funding fees are certain, the loss of trader is not certain but possible). However, there is also a possible market risk.
We distinguish two types of potential returns:
The Profits of the base token in which you provide liquidity. Please note that some part of the return is not certain. While the transaction fee & the funding fee are certain, Profits resulting from the trader's losses are possible, but not certain. There is also a possibility of loss (i.e. market loss, read below for more information). However, the probability of market loss on Deri liquidity mining is much smaller than for e.g. that of Uniswap due to the protection of arbitrageurs. 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.
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:
At t0, record "My Harvest in Current Epoch" as H0;
At t1, record "My Harvest in Current Epoch" as H1;
Calculate , where 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.
No, it isn't. Liquidity mining on Deri Pools is subject to market risk due to the possible net position resulting from a discrepancy between long and short positions (net position). Miners at Deri Protocol actually serve as counterparties for the trader's position, by covering this discrepancy.
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 mining PnL result could be negative but also positive (which depends on several factors such as funding & transaction fees, exceeding traders' profits & realizing them, etc.). Secondly, the probability of a negative result (a loss) on Deri liquidity mining pools is much smaller than that of typical spot exchanges due to the protection by arbitrageurs, 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.
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
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).
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).
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.
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. (>30min after every epoch ends).
The DLT Token is available & active on the following networks with the following smart contract addresses: BSC: 0xa487bf43cf3b10dffc97a9a744cbb7036965d3b9 POLYGON: 0xadea18da0af0ab14900a5634eddf5a83513cdce0