Rubicon | Pools Growth Rates

Growth Rates


Using Rubicon Pools has certain risks. Exercise caution and only deposit what you can afford to lose.

Rubicon Pools are the native liquidity pools for the Rubicon order books. Liquidity providers deposit tokens into a pool, where pool liquidity is used by active market makers (strategists) to provide liquidity on the order books. The yield from market-making activities goes to the liquidity providers, with a performance fee going to the strategist.

The performance of a pool (i.e. bathTokens, which represent an LP's share of the pool) is determined by the profitability of strategist market-making. Importantly, pool returns are discrete and not continuous as they are generated when trades are filled.

Pools utilize an open-source pool share model first implemented by yEarn vaults; for more details on how discrete returns are used to extrapolate an assumed APY and pool share structure, check out this great explanation by yEarn (our APR/APY estimations use the same approach).

A helpful concept to understand the performance of any given pool is the pool's virtual "price". This value is calculated based on the underlyingBalance / totalSupply for a pool; this represents the underlying assets vs. the number of shares. This value increasing represents realized yield for bathToken holders.

On the Pools page in the web app, each liquidity pool has a corresponding estimated APR:

Hovering over this rate will show a tooltip with additional rates for each pool. The main rate is an estimated APY, which is calculated from the better of trailing weekly or monthly performance for the pool. Here is an overview of how these rates are calculated:

7-Day % Change - Change in pool performance or share price in the last 7 days.

30-Day % Change - Change in pool performance or share price in the last 30 days.

Gross APR - The better of trailing 7d vs 30d change * (One year / sample size)

Estimated APY - The better of trailing 7d vs 30d change as a rate^(One year / sample size) -1

Rewards APR - Annualizes the rate at which rewards accrue and the current reward token price