Pools Growth Rates
Understanding the growth rates of Rubicon Pools
Using Rubicon Pools has a certain degree of risk. You could lose some or all of your funds. Please yield farm with caution. This is a novel mechanism and an early version of Pools. Presently, for the best results, we recommend depositing across an asset pair (e.g. ETH-USDC) or across many pools to avoid something akin to "impermanent loss" with our current logic. This inventory risk will soon be mitigated and single-asset pools will be less variable and more predictable.
โ€‹Rubicon Pools are the native liquidity pools for the Rubicon decentralized exchange. Anyone can deposit their crypto assets into the pools, where pool liquidity is used by active managers (called strategists) to make markets on the Rubicon order books. The returns from market-making activities are split between the pool LPs with a performance fee going to the strategist.
The performance of a pool (or bathToken which represents a pool LP share) is determined by the market-making success of strategists. Importantly, pool returns are discrete and not continuous as they are generated when trades are filled (by trading volume). Pools utilize the open-source pool share model first implemented by yEarn in their vaults; for more details on how discrete returns are used to extrapolate an assumed APY and pool share structure, check out this great explainer by yEarn (our 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. As this value increases, it represents yield for bathToken holders.
On the Rubicon Pools page in our web app, there is a table of our single asset liquidity pools with a corresponding estimated APY.
A snapshot of the bathETH pool on 10.18.21
There are a number of different rates displayed for each asset. The main rate displayed is an estimated APY which is extraploated from the better of trailing weekly or monthly performance for the pool. Moreover, there are a number of key values that are present in the tooltip for any given pool that provides the needed context to understand Pool performance. Here is a brief overview of key values and how they 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
ROI from Inception - Current share "price" or pool underlyingBalance / totalSupply
Days from Inception - Time since the initialization of the pool
Last modified 2mo ago
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