Yep, so was I. And to some degree I still am.
Luckily, @steemmillionaire (we'll forgive him for the username because he's a nice guy!) paid more attention to details than I did.
You can check out my discussion with him on my previous post.
Let's take things one step at a time, just in case you don't know what we talked about.
During the SPS airdrop it was very productive to keep especially DEC in liquidity pools. As the airdrop was closing to an end, people wanted to know what will the LP rewards be after the SPS airdrop ended.
The Splinterlands team came forward with an announcement 10 days ago and in there the new LP rewards were made public.
One thing that was made clear in that post was
In order to be able to get the LP rewards started sooner, we will be re-using the old LP reward system that we used to use for DEC LP rewards last year which should allow us to get the new LP reward system live starting when the SPS airdrop ends, on July 26th, 2022.
Ok, what I understand from this quote is that LP rewards will continue right after the SPS airdrop with the old LP rewards end.
As @steemmillionaire remarked, the APR for the SPS-DEC pool was a little over 3% at the time while the APR for staked SPS was 35% give or take. Ok, some swap fees get added, but the difference is way off.
So, I took a look at the respective liquidity pool on BeeSwap:
One can see lots of tokens as rewards there (in the red rectangle). But no SPS or DEC, which should be the bulk of the daily rewards, i.e.:
- 750k SPS / Month - SPS-DEC Pool on Hive Engine (Hive)
- 10M DEC / Month - SPS-DEC Pool on Hive Engine (Hive)
750k SPS/month means 25k SPS per day, which at today's SPS price is almost 1500 USD.
10M DEC/month means 333k DEC per day, which at today's DEC price is almost 175 USD.
It's interesting that even with the SPS and DEC LP rewards, the APR won't get anywhere near the staking rewards, right now. Of course, things tend to balance, so if more rewards are offered in one place, when more people seek them the APR drops and grows on the LPs where there is less competition.
The announcement post does mention new smart contracts are being developed for the LP rewards but in the meantime, the old LP reward system should be used to pay out LP rewards. I don't know if it should take as long on TribalDex as on BSC or Ethereum, but who knows what I'm missing here?
I saw other people in the #mavericks channel in discord were wondering about the missing LP rewards. Here's an example, with an almost instant response from a moderator:
So, the moderator says the rewards are accruing, we just can't see them, because the UI isn't ready yet.
Does this happen on TribalDex? Because here we don't have a claiming mechanism. The rewards are distributed on a set schedule.
I guess there are still some things I'm unclear about.
I need some liquidity and the LPs offer me that. But if the difference between LP rewards and staking rewards remains so high, I will probably continue to stake more SPS, which isn't something I planned for.