Fee Tier | Tick Spacing | Characteristic | Example |
---|---|---|---|
0.05% | 10 | Highly stable pairs (Minimal price volatility) | USDC/USDT |
0.15% | 30 | Moderately stable pairs (Low to medium volatility) | USDC/HBAR |
0.30% | 60 | Volatile pairs (Significant price swings) | LINK/HBAR |
1.00% | 200 | Highly volatile pairs (Unpredictable price movements) | JAM/HBAR |
Feesย APR = โ(24hย Volumeย ร (Fee ร 5/6)) / LBal โร 365Where:
Fee Tier | Price Range | Tick Range |
---|---|---|
0.05% | ยฑ 0.30% | ยฑ 30 ticks |
0.15% | ยฑ 3.00% | ยฑ 300 ticks |
0.30% | ยฑ 5.00% | ยฑ 500 ticks |
1.00% | ยฑ 10.00% | ยฑ 1,000 ticks |
Fee Tier | Price Range | Tick Range |
---|---|---|
0.05% | ยฑ 1.00% | ยฑ 100 ticks |
0.15% | ยฑ 9.00% | ยฑ 900 ticks |
0.30% | ยฑ 15.00% | ยฑ 1,500 ticks |
1.00% | ยฑ 30.00% | ยฑ 3,000 ticks |
Fee Tier | Price Range | Tick Range |
---|---|---|
0.05% | ยฑ 2.50% | ยฑ 250 ticks |
0.15% | ยฑ 20.00% | ยฑ 2,000 ticks |
0.30% | ยฑ 30.00% | ยฑ 3,000 ticks |
1.00% | ยฑ 60.00% | ยฑ 6,000 ticks |
Lpool,posโ โ= L / (b - a)Next, we measure the time interval ฮt between consecutive events (either swap or liquidity events), converting this duration into hours. The liquidity hours for a position during the ith interval are calculated as:
Spool,pos,i โ= Lpool,pos โร ฮtiThis process is repeated throughout the epoch. Each event emitted by the pool starts a new interval. The total liquidity hours for a position during an epoch are the sum of liquidity hours across all intervals:
Tpool,pos โ= โnj=1Spool,pos,jโWhere:
Rpool,pos โ= (Rpool โร Tpool,pos) / TpoolโโWhere:
Tpool โ= โnj=1Tpool,pos,jโAs an aside, the estimated Reward APR displayed in the SaucerSwap interface is calculated as follows:
Rewardย APR = (Rpool x 26.07145) / LpoolWhere Lpool represents the pool liquidity. 3. Distribution: At the end of each epoch, rewards are automatically sent to the participants via an airdrop. This system ensures maximal efficiency by only rewarding active liquidity. This focus not only improves the overall health of liquidity pools but also maximizes the utility and efficiency of each token distributed as a reward, all while allowing LPs to retain custody of their assets.
LUSDC/USDT,Bob โ= 10,000 / 10 โ= 1,000 LUSDC/USDT,Alice โ= 10,000 / 1,000 โ= 10In this example, we can assume ฮt1โ = 336 hours because neither position falls out-of-range. Since there is only one interval, SUSDC/USDT,pos,1โ = TUSDC/USDT,posโ. The total liquidity hours for each position are therefore calculated as follows:
TUSDC/USDT,Bob โ= 1,000 ร 336 = 336,000
TUSDC/USDT,Alice = 10 ร 336 = 3,360We can now determine the reward allocation in SAUCE for each position:
RUSDC/USDT,Bob โ= (100,000 ร 336,000) / (336,000 + 3,360) = 99,010
RUSDC/USDT,Alice = (100,000 ร 3,360) / (336,000 + 3,360) = 990Bobโs focused approach results in a reward of 99,010 SAUCE, while Aliceโs broader approach yields her only 990 SAUCE. Bobโs decision to provide liquidity in a narrow, focused range where he anticipated price activity led him to outperform Alice in terms of rewards by a factor of 100. Alice, although safer in terms of exposure to price movement, did not capitalize as efficiently on the rewards during this particular epoch. Note: The probability of the price staying within Bobโs narrow range over a 14-day epoch is low in a real-world scenario. Therefore, Bobโs actual accumulated liquidity hours and rewards could be less than this theoretical maximum.
Epoch | Weeks Since V2 Launch | SAUCE Rewards |
---|---|---|
1 | Nov 17 - Dec 1 | 1,600,000 |
2 | Dec 1 - Dec 15 | 1,300,000 |
3 | Dec 15 - Dec 29 | 874,714 |
4 | Dec 29 - Jan 15 | 700,000 |
5 | Jan 15 - Jan 29 | 559,339 |
โฆ | โฆ | โฆ |